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.


See also