The PRA’s expectations in relation to AMA


A firm may use an AMA in combination with either the BIA or TSA provided it obtains permission from the PRA.


In granting such permission, the PRA is required  by CRRArticle 314(3) to impose the following conditions when the AMA is used in combination with BIA or TSA:

  1. (a) on the date of first implementation of an AMA, a ‘significant’ part of the institution’s operational risk are captured by that Approach; and
  2. (b) the institution to commit to apply the AMA across a ‘material’ part of its operations within a time schedule approved by the PRA.


For the purposes of these conditions, the PRA considers that:

  • a ‘significant’ part of operational risk is approximately 50% or more; and
  • a ‘material’ part of its operations is around 85% (or more).