U-turn on SMA comparability sparks anger

Three regulators echo bank dismay as key principle of op risk capital framework is abandoned

Risk 0717 In Depth Herald, Mark Long
Mark Long, nbillustration.co.uk

This article is the second in a series focusing on proposed reforms of the operational risk capital framework; the first can be found here.

Simplicity, comparability, risk sensitivity. The Basel Committee on Banking Supervision identified these three principles as the foundations of its standardised measurement approach (SMA) for operational risk capital when it was first unveiled in March 2016. Yet fast forward a year, and all three appear to have been jettisoned in the pursuit of a compromise

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here