OM-8.3.1
Banks applying standardised approach for capital adequacy purposes as detailed in section CA-7.1 of Capital Adequacy Module, must comply with the principles set out in Section OM-8.2 and in this Section. In order to qualify for use of the Standardised Approach, a bank must satisfy the CBB that, at a minimum:
(a) Its board of directors and senior management, as appropriate, are actively involved in the oversight of the operational risk management framework;
(b) It has an operational risk management system that is conceptually sound and is implemented with integrity; and
(c) It has sufficient resources in the use of the approach in the major business lines as well as the control and audit areas.
Amended:October 2012
Added: April 2008
Added: April 2008