Standardised Approach (OpRisk)

OP-TSA is the code for the Standardised Approach to Operational Risk under the Basel III/IV exposure-category framework (BCBS 189/424). It defines the method banks must use to calculate operational-risk capital by applying prescribed risk-weight formulas to business lines and event types, replacing the older Advanced Measurement Approach. This approach standardises capital requirements across institutions while allowing limited internal model use.