Revised operational risk framework (Basel III)
Replacement of all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.

No data available for the deliverable: Replacement of all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.

Summary

The new framework bases capital on business indicators and historical loss data, with compliance effectively required by July 2025. The new approach is expected to improve risk management and sector resilience.

Canvas not supported.

Is it working?

The reform is nearly complete, with only final compliance and reporting steps remaining.

Actions

The framework is in place and banks are preparing for the transition, with most having been expected to meet the July 2025 deadline.

Are there plans?

Regulatory amendments and guidance have been issued, with QIS and industry engagement ongoing.

Is it on the agenda?

The SARB and Prudential Authority have prioritised this as part of Basel III, with clear implementation timelines.

Goals

To enhance the accuracy and comparability of operational risk capital requirements, replacing legacy approaches with a standardised, risk-sensitive model.

Summary

The new framework bases capital on business indicators and historical loss data, with compliance effectively required by July 2025. The new approach is expected to improve risk management and sector resilience.

Canvas not supported.

Is it working?

The reform is nearly complete, with only final compliance and reporting steps remaining.

Actions

The framework is in place and banks are preparing for the transition, with most having been expected to meet the July 2025 deadline.

Are there plans?

Regulatory amendments and guidance have been issued, with QIS and industry engagement ongoing.

Is it on the agenda?

The SARB and Prudential Authority have prioritised this as part of Basel III, with clear implementation timelines.

Goals

To enhance the accuracy and comparability of operational risk capital requirements, replacing legacy approaches with a standardised, risk-sensitive model.

No data available for the deliverable: Replacement of all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.

No data available for the deliverable: Replacement of all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.

No data available for the deliverable: Replacement of all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.

No data available for the deliverable: Replacement of all previous operational risk capital approaches (advanced measurement approach and three standardised approaches) with a single, risk-sensitive standardised approach for all banks.

Analyst: Tinashe Kambadza
Status: In progress
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