basel accord has prescribed guidelines on advanced measurement approach.
basel accord has prescribed guidelines on advanced measurement approach.
who has prescribed guidelines on advanced measurement approach?
basel accord
under ama the banks are allowed to develop their own empirical model to quantify required capital for operational risk. banks can use this approach only subject to approval from their local regulators. once a bank has been approved to adopt ama, it cannot revert to a simpler approach without supervisory approval.









































also, according to section 664 of original basel accord, in order to qualify for use of the ama a bank must satisfy its supervisor that, at a minimum:
advanced measurement approach
advanced measurement approach









































advanced measurement approaches (ama) is one of three possible operational risk methods that can be used under basel ii by a bank or other financial institution. the other two are the basic indicator approach and the standardised approach. the methods (or approaches) increase in sophistication and risk sensitivity with ama being the most advanced of the three.
advanced measurement approach