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PIB 6.11.2

(1) An Authorised Firm must, subject to (2), use the Basic Indicator Approach as prescribed in PIB App6 to calculate its Operational Risk Capital Requirement.
(2) An Authorised Firm may, with the written approval of the DFSA, use the Standardised Approach or the Alternative Standardised Approach, both as prescribed in PIB App6, to calculate its Operational Risk Capital Requirement if the DFSA is satisfied that:
(a) its Governing Body and senior management, as appropriate, are actively involved in the oversight of its Operational Risk framework;
(b) it has, in accordance with the requirements set out in this chapter, implemented and maintains an Operational Risk policy which provides for a sound and well-defined risk management framework to address the Authorised Firm's Operational Risk; and
(c) it has dedicated sufficient resources in the use of the relevant approach in its major business lines and its control and audit functions.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]