The Committee of European Banking Supervisors (CEBS) has published its Compendium of supplementary guidelines on implementation issues of operational risk (the Compendium).

CEBS has also published a feedback document following a consultation on the Compendium which was held earlier this year.

The purpose of the Compendium is to provide support to national authorities in their assessment and review of the operational risk frameworks implemented by institutions. The Compendium contains the following CEBS guidance papers:

  • The scope of operational risk and operational risk loss. These guidelines provide definitions of the scope of operational risk and operational risk loss that are intended to be unambiguous and aligned with prudential risk criteria to help institutions calculate and represent their operational risk profile.
  • The use test for AMA (advanced measurement) institutions. These guidelines allow an AMA institution to do more than just use its operational risk measurement system for calculating regulatory capital. They enable the institution to integrate its operational risk measurement system into its day-to-day business to be used for risk management on an on-going basis.
  • The allocation of AMA capital. These guidelines describe the range of allocation mechanisms currently used by major EU banking groups and outline a range of good practice in assessing allocation mechanisms and home-host related issues.

View CEBS Compendium of supplementary guidelines on implementation issues of operational risk, 8 September 2009