Basic indicator approach: Difference between revisions

Revision as of 15:01, 21 January 2007

Revision as of 18:56, 13 September 2007

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{{Basel II}}

The term'''basic "Basic Approach"approach''' or "Basic Indicator'''basic Approach"indicator refersapproach''' tois a set of operational risk measurement techniques proposed under [[Basel II]] capital adequacy rules for banking institutions.

Basel II requires all banking institutions to set aside capital for [[Operational Risk]]. Basic Indicator Approach is much simpler compared to the alternative approaches (i.e. [[Standardized Approach (Operational Risk)]] and [[Advanced Measurement Approach]]) and this has been recommended for banks without significant international operations.

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==See Also==

*[[Standardized Approachapproach (Operationaloperational Riskrisk)]]

*[[Advanced Measurementmeasurement Approachapproach]]

*[[Basel II]]

*[[Operational Riskrisk]]

==References==