Help with BASEL II Preparations |
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 Compliance with Basel II and Sarbanes-Oxley, the new United States regulations regarding financial reporting, is the response to the issues illuminated by the Worldcom and Enron crises amongst others. Whilst standard accounting regulations would seem an obvious move there are growing concerns surrounding both the costs and means of this compliance, at a time when, like most enterprises, financial institutions can ill afford to invest in more technology.
The New Basel Capital Accord, more commonly known as Basel II, is fundamentally about improving risk and asset management to avoid financial disasters. Compliance requires all banking institutions to have sufficient assets to offset any risks they may face, represented as an eligible capital to risk aggregate ratio of 8%. Part of this compliance dictates that data capture must be fully operational by 2004, and financial institutions must have three years of data on file by 2007.
It is worth attempting to increase storage capacity on your voice recording equipment, to store larger time spans of recording to accommodate the new three year Babel II guidelines.
Operational risk is defined by the Basel Capital Accord as: "The risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems, or from external events." It is not just about IT, all companies are exposed to operational risk, and the integration of processes, systems and people has to be understood and continually monitored to mitigate these risks.
Understanding how employees are performing will also help financial institutions establish that compliance is being upheld and that all personnel are trained sufficiently to ensure that possible risks in processes and operations are reduced and procedures are being properly implemented and not impaired by poor standards of training and coaching. The Qe2 suite of evaluation and assessment solutions can help to monitor and appraise performance.
Hence in order to comply with Basel II, financial institutions will need to have a full and in-depth understanding of all possible risks and their potential impact. This requirement is ongoing; it cannot in any way be regarded as a one-off, or something financial institutions do once a year to fill a page in the annual report.
For more information on how ComputerTel can help with your Basel II preparations, please call 01474 561111 ore email us on info@computertel.co.uk
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