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Discussion Paper

Is Operational Risk Regulation Forward-looking and Sensitive to Current Risks?


Abstract: This article evaluates whether US large bank operational risk capital requirements are forward-looking, sensitive to banks' current exposures, and allow for risk mitigation, and discusses modifications that could bring regulation closer to these goals while also highlighting the potential pitfalls of doing so.

https://doi.org/10.17016/2380-7172.2198

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2018-05-21

Number: 2018-05-21-2