ERM frameworks [13]

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Bullet points include: Regulatory framework for most of the world’s banks. Three pillar concept (like many others these days). Pillar 1: Minimum (regulatory) capital requirements. Pillar 2: Supervisory review process – regulators (aka supervisors in some jurisdictions) review how banks themselves assess they have adequate capital. Pillar 3: Market discipline – banks have to disclose information on adequacy of their capitalisation. Aims to be holistic, i.e. ERM based. Basel II Pillar 1 focused on market, credit and operational risk

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