Standardised Approach: Difference between revisions
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''Bank supervision - capital adequacy - operational risk | ''Bank supervision - capital adequacy - operational risk''. | ||
(SA or TSA). | (SA or TSA). | ||
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*[[AMA]] | *[[AMA]] | ||
*[[ASA]] | *[[ASA]] | ||
*[[Basel III Endgame]] | |||
*[[Beta]] | *[[Beta]] | ||
*[[BIA]] | *[[BIA]] | ||
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*[[Operational risk]] | *[[Operational risk]] | ||
* [[Risk Weighted Assets]] | * [[Risk Weighted Assets]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Risk_frameworks]] | |||
Latest revision as of 02:31, 31 January 2024
Bank supervision - capital adequacy - operational risk.
(SA or TSA).
The Standardised Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.
Under the standardised approach, gross income (GI) is multiplied by a coefficient (beta) to calculate the measure of risk weighted assets.
For example:
GI x beta = RWAs
£10m x 12% = £1.2m
The beta varies, according to the business line.
