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OPERATIONAL RISK

How will the SMA affect your operational risk framework and RWA?
Designed to help you quantify operational risks

In December 2017, the Basel Committee published the final description of the new Standardised Measurement Approach (SMA). This affects the Pillar 1 RWA calculation for all banks regardless of the quantification techniques currently in use. It is also a good opportunity to review the approach used in the banks’ Pillar 2 (ICAAP) process as well as other aspects of the operational risk management framework.

Finalyse has extensive experience in helping our clients quantify operational risks - including the expanding list of Pillar 2 risks discussed in the annual SREP review. A consultation with our experts regarding other aspects of the operational risk framework such as KRI’s, risk appetite and tolerance, as well as model risk management, could also be beneficial to you.

How does Finalyse address your challenges?

Avoid mistakes like a “zero tolerance” policy for operational risk

Complex treatment of all aspects of your ORM framework

You decide if we should help your team or get the work done for you

You decide how simple or complex your ORM framework should be

You do not have to aim for AMA to benefit from talking to us

Get all your questions answered

Key Features

  1. A pragmatic approach addressing the needs of your business – we help you decide, how simple or complex your ORM framework should be.
  2. A fully integrated approach – we provide a framework design and implementation.
  3. Pillar II methodology – an opportunity to review the approach used in the banks’ Pillar II process.
  4. Consulting, participation and project management – our multidisciplinary team of experts has expertise and resources to tackle all your challenges.
  5. Technology independent approach – we are not software vendors, but have experience and good working relationships with many.

What Finalyse experts say

01 Oct, 2018
Basel III: Operational risk in Banking

This Expert input is a follow-up to a previous expert input on finalising Basel III, this time with a focus on operational risk – an unsung villain of risk management. It gives a brief overview of the history of operational risk management and shows how exactly the crisis motivated a multitude of measurement approaches at the beginning (AMA) in particular, and their subsequent standardisation in Standardised Measurement Approach (AMA). There is a detailed outline of how the AMA formula works and a short discourse on output floor.

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