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PIB A6.2.2

An Authorised Firm which uses the Standardised Approach must calculate its Operational RiskCapital Requirement according to the following formula:

KSA = {Σ years 1–3 max[Σ(GI 1–8X B1–8) , 0]}/ 3

where:

KSA = the capital charge under the Standardised Approach

GI1–8 = annual gross income in a given year, as defined above in the Basic Indicator Approach, for each of the eight business lines

B1–8 = a fixed percentage set out in PIB Rule A6.2.3.

Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]