OPERA® Basel II Wealth Management Capital Allocation
Global banks are preparing for the new Basel Capital Accord (Basel
II), which ties a bank's regulatory capital requirements more tightly
to the risks each institution takes in the market. Implementing
the advanced quantitative approaches laid out in the Accord for
measuring operational and credit risks is proving a major challenge
for global banks that are involved in non-core banking services.
A top five, internationally active U.S. bank holding company began
the process of assessing the business impact and risk modeling and
data gathering requirements of the new Basel II requirements on
its vast array of business systems and processes.
After an initial assessment of the potential impact on its wealth
management activities, it was concluded, the bank's efforts would
benefit from the Basis Point Group operational, system and process
experience working with other wealth management organizations to
provide business program management services in support of its Basel
II risk assessment project.
Finding the Solution: