Basic Indicator Approach
Revision as of 14:10, 8 April 2021 by User (talk | contribs) (Created page with "The '''Basic Indicator Approach''' is the most simple approach for calculation the own funds requirement for operational risk. The own funds requirement i...")
The Basic Indicator Approach is the most simple approach for calculation the own funds requirement for operational risk. The own funds requirement is calculated as a fixed percentage (alpha factor, 15 %) of a simple indicator (gross income).[1]