FRM: Operational Risk in Basel II
There are three approaches to operational risk in Basel II: basic indicator (BIA), standardized (SA), and advanced measurement approach (AMA). BIA is alpha (15%) of the bank's total gross operating income (GOI). SA weights the charge by business line (12%, 15% or 18% depending on the business line). For more financial risk videos, visit our website! http://www.bionicturtle.com