How Can Financial Institutions Create an Advanced Measurement Approach Framework Model?

• By: ComplianceOnline Expert
• Date: April 05, 2012

The Advanced Measurement Approach (AMA) framework seeks effective governance, risk capture, assessment and quantification of operational risk exposure. Banks have the freedom though, to develop operational risk measurement and management programs, processes, and tools that are appropriate to their activities, business environment, and internal controls.

This article details the elements that have to be included in a model framework and the best practices for compliance.