How to gain more from operational risk management practices. Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.
Final rule on calculation of counterparty risk
A final rule updating how certain banking organizations are required to measure counterparty credit risk for derivative contracts under their regulatory capital rules has been jointly announced by the Federal Reserve, FDIC, and OCC. The final rule implements the "standardized approach for measuring counterparty credit risk," also known as SA-CCR and will replace the "current exposure methodology" for large, internationally active banking organizations, while other, smaller banking organizations may voluntarily adopt SA-CCR.
The rule, which will affect OCC regulations at 12 CFR parts 3 and 32, Federal Reserve Regulation Q (12 CFR part 217), and FDIC regulations at 12 CFR part 324, will be effective April 1, 2020, with a mandatory compliance date of January 1, 2022, for advanced approaches banking organizations.