RMG leaves Basel II op risk issues unresolved

SAN FRANCISCO - The Risk Management Group (RMG) of the Basel Committee on Banking Supervision met in mid-September to attempt to thrash out some key operational risk issues, and review the comments from the third consultative paper (CP3).

However, a number of the major topics in the op risk field at the moment remained "wide open" after the meeting, according to one regulator who was in attendance. And a Bank for International Settlements (BIS) source says it is possible that the issues won’t be pinned down before the final Basel II document is published.

Perhaps the most important debate in the op risk arena - the group allocation issue - remains unresolved. The language in the Basel II document is unclear about whether op

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