Operational risk capital (business indicator approach)

Roles that need it

• Operational Risk Analyst
• Capital Reporting Analyst
• Regulatory Consultant (Banking)
• Risk Advisory Consultant

Skills it belongs to

• Basel framework and capital
• Prudential and regulatory reporting (COREP, FINREP, US call reports)

Related concepts

• CRR3CRR3 is Regulation (EU) 2024/1623, the amendment to the Capital Requirements Regulation that implements the final Basel III reforms in the EU. It revises the standardised approach for credit risk, limits internal models, introduces the output floor and replaces the operational risk approaches, mostly applying from 1 January 2025.
• Pillar 1 (minimum capital requirements)Pillar 1 is the part of the Basel framework that sets minimum capital requirements for credit risk, operational risk and other risks with prescribed methods. In the EU the minimums are 4.5% CET1, 6% Tier 1 and 8% total capital as a share of risk-weighted assets.
• Risk-weighted assets (RWA)Risk-weighted assets measure a bank's exposures adjusted for risk: each exposure is multiplied by a risk weight that reflects its credit, operational or other risk. Capital ratios divide capital by RWA, so RWA also sets how much capital a bank must hold. Also called risk exposure amount.

Sources

• Regulation (EU) 2024/1623 (CRR3), EUR-Lex (external site) accessed 31 Oct 2026
• Basel III: Finalising post-crisis reforms, BIS (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.