Discarding the AMA could become a source of op risk

Basel Committee's "tantrum-like reaction" is not supported by evidence, say practitioners

Back in time
Back in time: Basel Committee's SMA proposals are a 'backward step'

On March 3, the Basel Committee on Banking Supervision published a long-awaited consultative document on its new standardised measurement approach (SMA) to operational risk.

In light of well-documented problems with the advanced measurement approach (AMA), the Basel Committee proposes some radical and ill-conceived reforms. It would replace the AMA – the own-models approach to operational risk used by more sophisticated banks – with a simplistic metric for regulatory capital. Broadly, that

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] 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

If you already have an account, please sign in here.

Sign up here


This address will be used to create your account

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: