
Allocation of capital to operational risk according to Basel II 131
however, that – as cannot be repeated too often – in all analytical solutions 80% of
the challenge is with data, and only 20% lies with heuristics and algorithms.
6.6 Capital standards and operational risk control costs
Several national bankers associations have supported, and continue to support, the
Basel Committee’s efforts to align more closely capital standards with actual risk.
They do so by promoting the opportunity for banks to use internal risk-oriented
models to assess the adequacy of their capital reserves. An example is the internal
ratings-based (IRB) approach, as well ...