Basel II Norms on Operational Risk
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Basel II norms define operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Basel II is the international capital adequacy framework for banks that prescribes capital requirements for credit risk, market risk and operational risk. There are three approaches under Basel II to measure and manage operational risk: the Basic Indicator Approach, which is based on annual revenue of the Financial Institution; the Standardized Approach, which is based on annual revenue of each broad business line; and the Advanced Measurement Approaches, which rely on the bank's internally developed risk measurement framework.
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The document provides information on a project report submitted by students to their professor on measuring brand image of Sony. It includes:
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Multi Attribute Attitude Model
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Means end chain
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Market Research on Gender Selection
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Reward Management in Retail Sector
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Basel II Norms on Operational Risk
- 1. Basel II norms on Operational Risk Presented by- Nahid Anjum
- 2. Agenda • Operational risk • Basel II norms on operational risk • Operational risk approaches • Methods of operational risk management
- 3. Operational risk • a risk arising from execution of a company's business functions • focuses on the risks arising from the people, systems and processes through which a company operates • According to basel II regulations, operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events
- 4. Basel II norms on operational risk • The Basel Committee defines operational risk as: – "The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events." • The Basel II definition of operational risk excludes, for example, strategic risk - the risk of a loss arising from a poor strategic business decision
- 5. Basel II norms on operational risk • Basel II is the international capital adequacy framework for banks that prescribes capital requirements for credit risk, market risk and operational risk.
- 6. Operational risk approaches Operational risk Advanced Basic indicator Standardized measurement approach approach approach
- 7. Methods of operational risk management • Basic Indicator Approach - based on annual revenue of the Financial Institution • Standardized Approach - based on annual revenue of each of the broad business lines of the Financial Institution • Advanced Measurement Approaches - based on the internally developed risk measurement framework of the bank adhering to the standards prescribed
- 8. Thank you