FSA answers critics by sketching UK op risk framework and timetable

London -- Over the past few weeks, UK’s Financial Services Authority (FSA) officials have outlined to industry executives how they see the nation’s operational risk framework and timetable evolving. This comes after the FSA was criticised in some quarters for not being proactive enough in pushing forward the development of the op risk framework (see Operational Risk , March 2004, page 1).

In both minutes of the Operational Risk Standing Group (ORSG) -- now posted online at the FSA’s website -- and in an address to Incisive Media’s Operational Risk conference held in London in mid-March, head of op risk policy Colin Tattersall sketched out the way forward. The first big surprise was that the UK’s approach to the advanced measurement approach (AMA) will be a "straight copy-out" of the EU’s Capital Adequacy Directive (CAD). "This is a change in regime in the UK for the FSA, and I