Greenhouse gas and Standardised Approach: Difference between pages

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''Environmental policy.''  
''Bank supervision - capital adequacy - operational risk''.


(GHG).
(SA or TSA).


Greenhouse gases are polluting gases that are generally believed to contribute to excessive warming of the earth ('global warming').
The Standardised Approach is a method of evaluation of certain operational risks for banks, for capital adequacy calculation purposes.


The best-known greenhouse gas is carbon dioxide (CO<sub>2</sub>).


Under the standardised approach, gross income (GI) is multiplied by a coefficient (beta) to calculate the measure of risk weighted assets.


The other five greenhouse gases covered by the Kyoto Protocol (1997) are:
For example:
*Methane (CH<sub>4</sub>)
*Nitrous oxide (N<sub>2</sub>O)
*Hydrofluorocarbons (HFCs)
*Perfluorocarbons (PFCs)
*Sulphur hexafluoride (SF<sub>6</sub>)


GI x beta = RWAs


Other greenhouse gases include water vapour (H<sub>2</sub>O), ozone (O<sub>3</sub>), chlorofluorocarbons (CFCs) and nitrogen trifluoride (NF<sub>3</sub>).
£10m x 12% = £1.2m




== See also ==
The beta varies, according to the business line.
* [[Carbon credits]]
* [[Carbon dioxide equivalent]]
* [[Carbon footprint]]
* [[Carbon-neutral]]
* [[Carbon tax]]
* [[Corporate social responsibility]]
* [[Decarbonise]]
* [[Emissions]]
* [[Footprint]]
* [[Greenhouse effect]]
* [[Greenhouse Gas Protocol]]
* [[Kyoto Protocol]]
* [[Methane]]
* [[Montreal Pledge]]
* [[Renewables]]
* [[Streamlined Energy and Carbon Reporting]]




==External link==
==See also==
* [https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf Greenhouse Gas Protocol]
*[[AMA]]
*[[ASA]]
*[[Basel III Endgame]]
*[[Beta]]
*[[BIA]]
*[[Bank supervision]]
*[[Capital adequacy]]
*[[Internal Models Approach]]
*[[Operational risk]]
* [[Risk Weighted Assets]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:The_business_context]]

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.


See also

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