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The primary objectives of the document are to clarify the key elements of supervisory cooperation with respect to the implementation of AMA and establish a framework of principles to facilitate information sharing in the assessment and approval of AMA methodologies; and to establish a set of principles to promote the development and assessment of allocation mechanisms incorporated in a hybrid AMA. The principles set out in this document do not supersede the general principles described in the document High-level principles for the cross-border implementation of the New Accord but rather provide further elaboration of these principles in an operational risk context. Also, to the extent that this document refers to operational risk capital requirements, such references are limited to the Pillar 1 capital charge only.
The first set of principles is intended to be a supplement to the document Home-host information sharing for effective Basel II implementation as the principles focus specifically on supervisory cooperation in the context of banks implementing an AMA. The second set of principles builds on the document Principles for the home-host recognition of AMA operational risk capital and specifically addresses allocation mechanisms developed as part of a hybrid AMA.