The Future of Operational Risk in Financial Services
A new approach to operational risk capital management
As part of its completion of post-crisis reforms, the Basel Committee on Banking Supervision (Basel Committee) recently finalized its Basel III standard, which complements its previously published initial phase of Basel III reforms.
Deloitte provides perspective on Basel’s new Standardized Measurement approach, and how expected investments can be leveraged to derive risk intelligence and produce insight.
Essential components of a mature operational risk management framework that goes beyond compliance with the new standard:
- The new formula-based approach for calculating Operational Risk Capital
- Improving the quality of historical loss data
- Changing behaviors and culture
- Gaining efficiency by automating data collection and aggregation from multiple sources
- Creating an effective infrastructure for aggregated risk data and risk reporting
- Developing advanced capabilities in risk analytics and predictive risk intelligence