From Open Risk Manual


BCBS D355 is a document published by the Basel Committee on Banking Supervision on March 2016 in the Operational Risk category.


Standardised Measurement Approach for operational risk - consultative document.


In October 2014, the Committee proposed revisions to the standardised approaches for calculating operational risk capital. This updated consultative document proposes further revisions to the framework, which emerged from the Committee's broad review of the capital framework.

The Committee's review of banks' operational risk modelling practices and capital outcomes revealed that the Advanced Measurement Approach's (AMA) inherent complexity, and the lack of comparability arising from a wide range of internal modelling practices, have exacerbated variability in risk-weighted asset calculations, and eroded confidence in risk-weighted capital ratios. The Committee is therefore proposing to remove the AMA from the regulatory framework.

The revised operational risk capital framework will be based on a single non-model-based method for the estimation of operational risk capital, which is termed the Standardised Measurement Approach (SMA). The SMA builds on the simplicity and comparability of a standardised approach, and embodies the risk sensitivity of an advanced approach. The combination, in a standardised way, of financial statement information and banks' internal loss experience promotes consistency and comparability in operational risk capital measurement.

The Committee welcomes comments on all aspects of this consultative document and the proposed standards text. Comments on the proposals should be uploaded here by Friday 3 June 2016. All comments will be published on the website of the Bank for International Settlements unless a respondent specifically requests confidential treatment.

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