OPERA^® Basel II — Wealth Management Capital Allocation Case Study

The Challenge
Global banks are preparing for the new Basel Capital Accord (Basel II), which ties a bank's regulatory capital requirements more tightly to the risks each institution takes in the market. Implementing the advanced quantitative approaches laid out in the Accord for measuring operational and credit risks is proving a major challenge for global banks that are involved in non-core banking services.

A top five, internationally active U.S. bank holding company began the process of assessing the business impact and risk modeling and data gathering requirements of the new Basel II requirements on its vast array of business systems and processes.

After an initial assessment of the potential impact on its wealth management activities, it was concluded, the bank's efforts would benefit from the Basis Point Group operational, system and process experience working with other wealth management organizations to provide business program management services in support of its Basel II risk assessment project.

Finding the Solution:

• Evaluating Capital Requirements
• Risk Framework
• Initial Analysis
• Implementation
• Conclusion