Recent events provide ample evidence that underestimating the potential for concurrent losses in multiple risk areas can put pressure on capital levels. Pillar 3 plays an important role in providing greater information on banks' risk profiles and their ability to manage them.
In addition to disclosing their capital requirements for operational risk under the AMA, banks will have to provide a description of their AMA process, including their measurement approaches and relevant internal and external factors considered. They will also have to provide information about the use of insurance to mitigate operational risk.