1. In the Sound Practices for the Management and Supervision of Operational Risk (Sound Practices), published in February 2003, the Basel Committee on Banking Supervision (Committee) articulated a framework of principles for the industry and supervisors. Subsequently, in the 2006 International Convergence of Capital Measurement and Capital Standards: A Revised Framework Comprehensive Version (commonly referred to as "Basel II"), the Committee anticipated that industry sound practice would continue to evolve [Basel Committee on Banking Supervision, International Convergence of Capital Measurement and Capital Standards: A Revised Framework Comprehensive Version, Section V (Operational Risk), paragraph 646, Basel, June 2006.]. Since then, banks and supervisors have expanded their knowledge and experience in implementing operational risk management frameworks (Framework). Loss data collection exercises, quantitative impact studies, and range of practice reviews covering governance, data and modelling issues have also contributed to industry and supervisory knowledge and the emergence of sound industry practice.