One of the major challenges bankers face in implementing an AMA is creating a credible database of internal loss-event data on which to base the AMA capital charge. Another, and no less important, challenge is ensuring that operational-risk measurement and management systems are integrated into the day-to-day decisionmaking processes of your institution.
The focus on enhanced risk management in Basel II means that banks should not view Basel II preparations with a checklist mentality. Rather, they should be moving ahead on many fronts, looking at how to make the fundamental changes needed for better risk identification, measurement, management, and control.