Advanced management approach

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Commonwealth Bank of Australia has said the following about digital banks:

"Often described as challenger banks or neo-banks (see below), digital banks are viewed as "next-generation" innovative institutions that will or increasingly are taking on the traditional, incumbent banks which provide a wide-range of services and products through different channels such as 'bricks and mortar' branches, call centres and online platforms."

Critique the Commonwealth Bank of Australia statement by answering the following question.

Under the Basel III Accord, banks were required to use the Advanced Management Approach (AMA) for operational and technology risk management. What is meant by this approach and why is it being replaced? Briefly discuss the proposed change that will replace AMA, stating your personal opinion on why you support it or not.

Reference no: EM133373442

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