Bank supervision - capital adequacy - operational risk.
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.
GI x beta = RWAs
£10m x 12% = £1.2m
The beta varies, according to the business line.