---
kind: "section"
citation: "12 C.F.R. § 1240.162"
title: "12"
number: "1240.162"
heading: "Mechanics of operational risk risk-weighted asset calculation."
url: "https://uscodex.org/cfr/12/1240.162"
---

# §1240.162. Mechanics of operational risk risk-weighted asset calculation.

- (a) If an Enterprise does not qualify to use or does not have qualifying operational risk mitigants, the Enterprise's dollar risk-based capital requirement for operational risk is its operational risk exposure minus eligible operational risk offsets (if any).
- (b) If an Enterprise qualifies to use operational risk mitigants and has qualifying operational risk mitigants, the Enterprise's dollar risk-based capital requirement for operational risk is the greater of:
  - (1) The Enterprise's operational risk exposure adjusted for qualifying operational risk mitigants minus eligible operational risk offsets (if any); or
  - (2) 0.8 multiplied by the difference between:
    - (i) The Enterprise's operational risk exposure; and
    - (ii) **Eligible operational risk offsets (if any).**
- (c) **The Enterprise's risk-weighted asset amount for operational risk equals the greater of—**
  - (1) The Enterprise's dollar risk-based capital requirement for operational risk determined under paragraphs [(a)](#a) or [(b)](#b) multiplied by 12.5; and
  - (2) The Enterprise's adjusted total assets multiplied by 0.0015 multiplied by 12.5.
- (d) After January 1, 2022, and until the compliance date for this section under [§ 1240.4](/cfr/12/1240.4.md), the Enterprise's risk weighted amount for operational risk will equal the Enterprise's adjusted total assets multiplied by 0.0015 multiplied by 12.5.

## Notes

### Authority

Authority: 12 U.S.C. 4511, 4513, 4513b, 4514, 4515, 4517, 4526, 4611-4612, 4631-36.

### Source

Source: 85 FR 82198, Dec. 17, 2020, unless otherwise noted.