Regulatory Alerts2006-06-13
Guidance Notice for Applications to Use an Advanced Measurement Approach for Operational Risk
The Federal Financial Supervisory Authority (BaFin) mandates that German financial institutions submit written applications and undergo on-site examinations to secure prior approval for calculating operational risk capital charges using an Advanced Measurement Approach. Applicants must submit complete documentation, including a detailed AMA requirements list and implementation schedule, with approvals processed on a first-come, first-served basis beginning in 2007. Approved institutions bear examination costs and must maintain compliant risk management frameworks through continuous supervisory monitoring until full regulatory implementation in 2008.
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