FSA guidance consultation on the standardised approach to operational risk – On 25 October 2010, the FSA published a consultation on guidance for enhancing frameworks in the standardised approach (TSA) to operational risk. The proposed guidance discusses the work being done by TSA industry expert groups and outlines practices which firms may find useful. It is non-exhaustive, non-prescriptive and focuses on the following issues:

1. Operational risk governance and risk management structures.
2. Identifying, managing, monitoring and reporting operational risk.
3. The use test for TSA.

The proposed guidance relates to rules contained in the Prudential sourcebook for Banks, Building Societies and Investment Firms (BIPRU 6.4.1R) and the Senior Management Arrangements, Systems and Controls sourcebook (SYSC 4.1.1R-4.1.2R and 7.1.16R).
Comments can be made on the consultation until 22 November 2010.

http://www.fsa.gov.uk/pubs/guidance/gc10_03.pdf