‹#›
ORM
Approaches
Advanced Measurement Approaches (AMA)
—Standardized Approach
criteria applies plus
—Requires collection of
operational losses for
all business lines according to
a “Loss Event Classification
Scheme”
—Capital will be the
number generated by the bank’s
internal operational risk
measurement system
—Subject qualifying
criteria and regulatory
approval
—Typically capital
would be lower than BIA and
TSA
qLoss Event
(Internal and External) takes front seat
qAnalysis and
Scenario Tests
qHigh level of
Risk Mitigation
qMatured
Stage
qOverall Lower
Charge
qRCSA and KRIs all
integrated in model