The bluntness of the Basel Committee on Banking Supervision’s revised approach to calculating operational risk capital could leave banks undercapitalised against a rise in future losses from cyber attacks, risk managers at Asia-Pacific banks fear. Some even argue the new method could disincentivise banks to quantify such exposures.
One of the major determinants of a bank’s op risk capital under the standardised measurement approach (SMA) is its losses from past op risk breaches. Yet with realis
The week on Risk.net, 14-20 April, 2018Receive this by email