There are three approaches to operational risk in Basel II: basic indicator (BIA), standardized (SA), and advanced measurement approach (AMA). BIA is alpha (15%) of the bank’s total gross operating income (GOI). SA weights the charge by business line (12%, 15% or 18% depending on the business line)
are they risk weights?the ones which you are calling data factor
khanpreston1 1 year ago
is Alpha 15% still now?is it given by Basel accord?
khanpreston1 1 year ago
Very informative video. Thanks for creating this.
dgouveia3344 2 years ago