Operational Risk in Basel II

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Uploaded by on Oct 24, 2008

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)

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  • are they risk weights?the ones which you are calling data factor

  • is Alpha 15% still now?is it given by Basel accord?

  • Very informative video. Thanks for creating this.

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