Manegement of operational risk: an evaluation of the internacional convergence of capital measurement and capital standards - a revised framework - Basel II

Abstract

This study aims to evaluate the advancements in the negotiations of the International Convergence of Capital Measurement and Capital Standards: a Revised Framework - Basel II, in the context of the failure of financial institutions, which highlights the importance of the evaluation of operational risk. In this scenario, the alternative found was the reformulation of Basel I and the structuring of a New Agreement of Capitals, Basel II. This New Agreement seeks to demand a greater emphasis on the very internal control of the banks, on their processes and risk management models, on the revision process by the supervisor and on market discipline. The study demonstrates that Basel II, despite the difficulties existing in its implementation, proves to be a relevant instrument in the effort towards the increase of safety and strength of the world financial system.