Driven by new regulation, banks should prepare for implementation of the Standardised Measurement Approach (SMA) for operational risk.
The purpose of this seminar is to give you a good understanding of the new Basel document for Operational risk with particular focus on the challenges posed by the Standardised Measurement Approach (SMA).
We start with an overview of the recent regulatory initiatives and industry response.
We present how to manage the regulatory change and explain a new way of quantifying operation risk including a potential SMA/AMA hybrid models.
We give a thorough introduction to the Standardised Measurement Approach for operational risk that primarily includes: business indicator, BI component, internal loss multiplier and loss component and the SMA capital requirement.
Further, we present and explain the minimum standards for the use of loss data under the SMA, which consist of general and specific criteria on loss data identification, collection and treatment.
Finally, we will present and discuss possible ways of managing operational in light of the new capital rules and regulatory environment.
Classroom style lectures featuring up-to-date case studies and examples.