Abstract
This article discusses the three approaches for setting capital charges for operational risk as proposed by the New Basel Accord. The article addresses a series of questions raised by the Basel proposal related to defining, measuring, and reserving for operational risk. The author suggests that capital reserves may actually serve as a deterrent to reducing operational losses.
Volume
4
Page
47-56
Number
1
Year
2002
Categories
Operational Risk
Publications
Journal of Risk Finance
