Op risk standard will hike capital by 11% – latest data
Rises in capital under SMA will vary depending on regulator treatment, writes op risk expert
Global regulators have finalised the standardised measurement approach (SMA) for measuring operational risk and assessed its impact. The final rules give national supervisors the discretion to set certain parameters of the calculation, to tailor banks’ capital requirements according to local needs. But op risk managers hoping for clarity in the new process may be disappointed. For many, uncertainty is the main takeaway.
ORX has conducted research into the capital impact of the SMA based on data
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