Day 2

On Day Two, we will discuss in detail the process to undertake for complying with the Standardised Approach and Advanced Measurement Approach. Without emphasis on the technical modelling aspects of operational risk, the framework for Standardised Approach and Advanced Measurement Approach is explained. We will also discuss the true benefits of Basel II operational risk capital charge and whether it is still relevant in today’s environment.

0830 - Registration and coffee

0900 - Basel II Oprisk measurement techniques

– Basic indicator approach
– Standardised approach
– Advanced measurement approach

1030 - Morning break

1100 - Standardised Approach Explained

– STA elements
– Gross income mapping to Basel business lines
– Case study - The STA journey of a Singapore local bank

1230 - Lunch

1330 - Advanced Measurement Approach Explained

– AMA elements
– Case study - Credit Suisse AMA scenario approach

1500 - Afternoon break

1530 - Conclusion

– Its more operational risk management rather than operational risk measurement
– Is Basel II dead (under current financial crisis)?

1700 - End of Course