
Allocation of capital to operational risk according to Basel II 133
䊏 A very important organizational effort is needed to be in charge of this
situation.
䊏 Capital is important, but there should be no overemphasis on capital as a substitute
to sound management and rigorous supervision.
Some commercial banks are concerned about the lack of detail on the variety of
operational risk components. They criticize the fact that setting capital requirements
for different op risk at approximately 12% of capital, is arbitrary and not consistent
with their own estimates of operational risk exposure (which they say are much lower,
but provide no statistics to prove ...