EBA · 2019_4628 Rejected question

Upside uncertainty and OPR AVA

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
99
Topic
Supervisory reporting - COREP (incl. IP Losses)
Submitted by
Credit institution
Submitted
2019-03-27
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Question

How shall OPR AVA be treated in relation to Upside uncertainty?

Background

The upside uncertainty explanation - 'The upside uncertainty shall be calculated and aggregated on the same basis as the total AVA computed in column 0110, but substituting a 10% level of certainty for the 90% used when determining the total AVA (cp. Art. 8(2) of the Delegated Regulation).' seems to be problematic for the calculation of OPR AVA for institutions that does not have an AMA model. Theoretically it is hard to imagine in which cases there is an upside potential of operational risk.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2019_4628

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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