ADVANCED MEASUREMENT APPROACHES

Advanced Measurement Approaches: translation

Advanced Measurement Approaches ( AMA)

One of three methods for quantifying capital required for operational risk under proposed Basel II capital rules. Banks using the Advanced Measurement Approaches must hold capital for operational risk based on a risk quantity generated by the bank's internal measurement procedures. The most common internal methods are self-assessments.

See also self-assessment, Standardized Approach, basic indicator approach and operations risk. American Banker Glossary