This supervisory statement explains the Prudential Regulation Authority’s (PRA’s) expectations concerning:
1. the extent to which an Advanced Measurement Approach (AMA) should capture the firms’ operational risks where the firm has implemented or is about to implement AMA and is relevant where the AMA is applied across only part of a firm’s operations; and
2. SIF (significant influence function) attestation of firms' compliance with AMA standards as well as the action firms should take in the case of non-compliance.
Supervisory Statement 14/13