Operational risk

EU CAD beta lowered – but only for some

UK and European op risk executives were shocked when a EU Commission official revealed that although the beta for the trading and sales business line would be lowered to 15% from 18% in the EU's Capital Adequacy Directive, this benefit would only be…

HKMA to rule out AMA approach

Hong Kong’s banking regulator, the Hong Kong Monetary Authority (HKMA), will not allow the territory’s banks to use the advanced measurement approaches (AMA) for measuring operational risk when Basel II is implemented from the end of 2006.

VAR: ready to explode?

The SEC plans to force US securities firms to tighten up their value-at-risk reporting. Its decision comes as VAR at the world’s leading financial services firms soared an average 25.8% last year. Who are the biggest risk-takers, and are risk managers…

UK FSA writes AMA strategy anew

An official from the UK's Financial Services Authority (FSA) sketched in some details of the regulator's approach to the operational risk portions of Basel II implementation in that country at an operational risk conference held in early July in London.

US Congressman calls for op risk redraft

A Congressman and members of the banking industry lambasted the operational risk capital charge in Basel II at a fresh set of hearings, The New Basel Accord: Private Sector Perspective, held in the House of Representatives' Financial Services Committee…

Basel II Alert - Highlight of Critical Changes

It has been more than six years in the making, but the final text of the Basel II framework has arrived. The Basel Committee on Banking Supervision published the text at the end of June to a mix response from the financial services industry.

Emerging slowly to Basel

Financial institutions in emerging markets are overly optimistic that they will implement Basel II on time, according to a survey conducted by the World Bank. The results were announced at the World Bank advanced risk management workshop in Washington,…

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