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Delegated regulation specifying the assessment methodology on AMA for operational risk

Delegated regulation specifying the assessment methodology on AMA for operational risk

On the 6th July 2018 the Commission Delegated Regulation (EU) 2018/959 of 14 March 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council (CRR) with regard to regulatory technical standards of the specification of the assessment methodology under which competent authorities permit institutions to use Advanced Measurement Approaches for operational risk was published in the Official Journal of the European Union.

According to Article 312(2) of CRR competent authorities permit institutions to use Advanced Measurement Approaches (‘AMA’) based on the institutions' own operational risk measurement systems where they meet all of the qualitative and quantitative standards set out in that Article. The competent authorities assess an institution's compliance with the requirements referred to in points (a) and (b) of Article 312(4) of CRR. This Regulation harmonises supervisory approaches regarding AMA assessments although they cannot be conducted in a uniform manner. It depends on the type of application submitted (initial, on-going, return to the use of less sophisticated approaches) and takes into account the nature, scale and complexity of the institution and its activities.  

18-9-2018