Finalisation of technical amendment and frequently asked questions
This document sets out a final technical amendment to the Basel Framework. Technical amendments are defined as changes in standards that are not substantial in nature but that cannot be unambiguously resolved based on the current text. The amendment relates to the standardised approach to operational risk.
The Basel Committee finalized a technical amendment to the Basel Framework on the standardized approach to operational risk, following consultation in June 2025. It also finalized an FAQ on the standardized approach to market risk and made consequential FAQ updates, with the revised text incorporated into the consolidated Basel Framework.
Key dates
- 2025-06-01
- Basel Committee consultation on the proposed technical amendment was issued in June 2025
- 2026-03-23
- Basel Committee finalized the technical amendment and related FAQs
- 2029-03-23 Deadline
- Latest date by which Basel Committee members agreed to implement the technical amendment
Suggested considerations
- Compliance teams may wish to map the amended operational risk text into internal capital calculation policies and control documentation.
- Firms should consider whether any existing business indicator calculations or interpretations rely on the previously ambiguous operational risk wording.
- Risk and regulatory reporting teams may wish to review the finalized market risk FAQ and related FAQ updates for any knock-on effects on methodology documentation.
- Implementation planning may need to account for local transposition or supervisory timelines, with the Basel Committee indicating implementation within three years at the latest.
What changed
The technical amendment is limited to a clarification in the standardized approach to operational risk rather than a substantive policy rewrite. The source summary indicates the amendment addresses an ambiguity in the existing text that could not be resolved unambiguously under the prior wording, and it specifically relates to the operational risk standardized approach. The document also includes a finalized response to one FAQ on the standardized approach to market risk, together with consequential amendments to related FAQs.
Compliance impact
The practical impact appears moderate rather than transformative because the Basel Committee characterizes the change as a technical amendment, not a substantial new standard. However, because it affects the Basel Framework text used for operational risk capital calculations, firms may need to adjust methodology interpretation and documentation to avoid inconsistencies with supervisory expectations.
References
- [1] bis.org/bcbs/publ/d583.htm
- [2] bis.org/bcbs/publ/d527.htm
- [3] fsa.go.jp/inter/bis/20260330/20260330.html
- [4] linkedin.com/pulse/bis-technical-amendment-hedging-counte... third-party
- [5] bis.org/bcbs/publ/d579.htm
- [6] fsa.go.jp/inter/bis/20211112/20211112.html
- [7] regulationtomorrow.com/2026/03/basel-committee-technical-... third-party
- [8] bis.org.in/qazwsx/cmd/CMD-II(Leg)_22092014.pdf third-party
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