Basel announced recently consultative guidelines to the public calling for revisions to the operational risk capital framework. The revisions suggest supervisors would set new rules how much capital was required to be held against operational risks, such as the risk of IT failure, fraud, errors and the like. Basel plans to run an impact study on impact to the sector before finalising its operational risk calculations under a new Standardised Measurement Approach which would include a Business Indicator or adjustment for past losses. However, early word on the Street is that some banks could be looking at an increasing capital requirement given their history or current operational capital levels versus their peers. The consultative guidelines can be found here: http://www.bis.org/press/p160304.htm.
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