Question
How shall OPR AVA be treated in relation to Upside uncertainty?
Background on the question
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.
Answer
This question has been rejected because the matter it refers to has already been identified and will be considered for a forthcoming version of the Reporting framework and release of the respective validation rules.For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.