Standardised Approach

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.

See also

• AMA
• ASA
• Basel III Endgame
• Beta
• BIA
• Bank supervision
• Capital adequacy
• Internal Models Approach
• Operational risk
• Risk Weighted Assets