SMA proposal fires up op risk managers

Banks say backward-looking SMA is easily gamed and will lead to high and volatile capital charges

Not rocket science: banks say SMA is not risk-sensitive compared with the previous own-models approach to op risk

One former regulator isn't happy about the Basel Committee on Banking Supervision's plans to reform regulatory capital rules for operational risk.

"Are you going to go to Nasa and tell them, ‘The way you do all your rocket launches is really too complicated. The average American doesn't understand it. You need to simplify it so that we can all understand how you're launching those rockets?' That's insanity."

He's not alone. A consultation released in March on the committee's proposals has

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Investment banks: the future of risk control

This survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

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