‹#›
ORM
Approaches
The Basic Indicator Approach (BIA)
—Simplest of the three
approaches
—Requires one top of
the house capital number
—Capital will be 15%
of average gross income over last
3 years
—Typically capital
would be higher than TSA or
AMA
qAverage Gross
Income 3 Years
qPillar II
Supervisory Review
qMinimum Level of
Risk Mitigation
qInitial Phase –
not permanent
qLower Charge if
Commercial Activity
qLoss Data
Collection In Place