A Capital Measure
is a Scarce Resource
Retrograding AMA to SMA
New Directives ...
This page has been dedicated to investigate various aspects of the new Standard Measurement Approach (SMA) for banks operational risk capital charge.
The new SMA method that has been published by the Basel Committee on Banking Supervision was showcased over twelve months ago. However, there is a new consultative document that threatens to unearth current trends in parametric operational risk measurement.
Over the next few months, we hope to add to this page to give insight into this new SMA technique, demonstrating how can work, its strengths and its weaknesses. We will reference popular articles and hopefully research a few of our own.