Operational risk advances will follow dropping of Basel II floor, says Moody’s

NEW YORK -- Further advances in banks’ operational risk measurement and management are likely to be stimulated by the decision of global banking supervisors to drop the op risk ‘floor’ in their Basel II bank protective capital proposals, credit-rating agency Moody’s Investors Service said in July.

Moody’s said a floor would have limited the incentive for banks to develop a more sophisticated approach to op risk measurement and management.

But now several major global banks that have made