Bankers are trying to beat supervisors to a satisfactory definition of operational risk. That’s because last June the Basel committee on banking supervision added operational risk to factors for which it proposes to charge regulatory capital. Bankers fear the committee will rush to a formula based on turnover or asset size to set a capital charge for operational risk. Size and volume isn’t the issue here, they say, it’s quality of management, organizational structure and systems.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
