Alternative Standardised Approach (ASA) for operational risk
The Alternative Standardised Approach may also be used for operational risk instead of the Standardised Approach once permission has been given by the competent supervisory authority. This approach differs from the “normal” Standardised Approach in that the own funds requirement for both business segments – retail and wholesale – is calculated on the basis of the gross credit volume for both of these segments rather than on the basis of operating income. Instead of the operating income, 3.5% of the outstanding credit volume is used as an indicator, which is then subsequently multiplied by the corresponding beta factor for the business segment. The approval of the Alternative Standardised Approach is dependent on certain requirements being fulfilled that extend beyond those required for the Standardised Approach.