Operational risk

Operational Risk Module 3.0 calculates the capital charge for the operational risk with respect to Basel III regulations. Both standardized methods for calculating the capital charge are covered: Basic Indicator Approach and Standardized Approach, as well as Advanced Measurement Approach. Loss distribution approach is used for calculating the capital charge for the operational risk, when using the Advanced Measurement Approach. It uses data from the loss database to estimate loss frequency and loss severity distributions, and calculates operational risk VaR, and corresponding capital charge.