Article: What Are The Basel II Operational Risk Requirements?
|
|
|
|
|
What Are The Basel II Operational Risk Requirements?
?Basel II? has been in the news an awful lot these past 18 month or so. Unlike Basel I the new standard introduces a capital charge based on operational risk. The words Operational risk themselves immediately raise a whole bunch of questions; What is ?Basel II?? What is operational risk? How is the charge going to be calculated? What are the operational risk standards that banks will have to comply with?
Basel II or to use is full name ?International Convergence of Capital Measurement and Capital Standards? defines operational risk as ?the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events?. This definition explicitly includes legal risk but excludes strategic and reputational risk.
In terms of the...
|
|
|
|
|
|
|
Home
|
Back To Articles Directory
|
|
|
Send your comments, Suggestions or
Queries regarding this site at roseindia_net@yahoo.com.
|
|
Copyright © 2006. All rights
reserved.
|
|