The revised Framework provides a limited degree of national discretion in the way in which each of these options may be applied, to adapt the standards to different conditions of national markets. The Central Bank of Barbados has reviewed these areas of national discretion and will be circulating its guidance on these to the industry shortly.
Operational risk is a new area now included in the regulation of banks. The Basel Committee defines operational risks as: “The risk of loss resulting from inadequate or failed processes, people and systems from internal and external events”.