Regulatory Alerts2021-09-14
Supervisory Guidelines for the Advanced Measurement Approach
The Prudential Authority of South Africa issued this guidance note to clarify definitions and principles related to the Advanced Measurement Approach for operational risk, replacing Guidance Note 2/2013. It specifies rules for partial and hybrid AMA usage, mandates that banks cannot revert to simpler approaches without prior written approval, and emphasizes home-host supervisory cooperation for cross-border implementation. The document requires banks to ensure their independent auditors receive the guidance and to return a signed acknowledgement of receipt to the Authority.
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