Similarly, the AMA framework requires a more systematic approach for assessing the operational risk to which a bank is exposed and ties an explicit regulatory risk-based capital requirement to these exposures. Under Basel I, this charge was indirect and embedded in credit and market risk measures.
In contrast, under the AMA, banks with higher levels of operational risk – such as those more heavily involved than others in activities that have elevated loss potential from fraud, business disruption, or systems failure – generally should have higher capital requirements.