RAC BASEL II Compliance

Our company is ready to provide you with assistance in achieving compliance with the BASEL II requirements concerning operational risks.

In 2004 the Basel Committee on Banking Supervision released new regulations of capital adequacy of active banks, which are known as Basel II. These regulations are aimed at strengthening stability as well as security for banks and financial institutions. The regulations are based on the three pillars: the first pillar-minimum capital requirements, the second pillar - supervisory review and the third pillar- market discipline. The Basel II has been valid since 2007.

The first Basel II pillar has enlarged the risk profile on operational risk, which is defined as a risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
A document, which contains recommendations for effective management and supervision of operational risk, is called Sound Practices for the Management and Supervision of Operational Risk. The document develops 10 basic principles for the operational risk management.
By meeting these 10 principles, banks can choose the Advanced Measurement Approach (AMA) of the operational risks that in consequence allows the reduction of capital on the operational risk coverage.

Team of RAC consultants has an experience from implemented projects on evaluating the current compliance status of financial institutions against the principles as well as developing controls to eliminate the identified nonconformities with these principles.

Selected controls for the operational risk coverage are usually presented in the ISO/IEC 27002 structure and linked with the Basel II requirements. A bank obtains information on the compliance with both the Basel II requirements concerning the operational risks and ISO/IEC 27002 controls.

For further information contact us: +420 221 628 400 or rac@rac.cz