1. QUALIFYING CRITERIA
1. To be eligible for an Advanced Measurement Approach, credit institutions must satisfy the competent authorities that they meet the qualifying criteria below, in addition to the general risk management standards in Article 22 and Annex V.
1.1. Qualitative Standards
2. The credit institution's internal operational risk measurement system shall be closely integrated into its day-to-day risk management processes.
3. The credit institution must have an independent risk management function for operational risk.
4. There must be regular reporting of operational risk exposures and loss experience. The credit institution shall have procedures for taking appropriate corrective action.
5. The credit institution's risk management system must be well documented. The credit institution shall have routines in place for ensuring compliance and policies for the treatment of non-compliance.
6. The operational risk management processes and measurement systems shall be subject to
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