Loss control case reports to OPE25 on FinTech for SOX ratio to consider for solvency and insurance underwriting

With the OPE25 we now have a 3rd ratio for the capital structure: Economic Capital/Incentivized Pay. The SOX ratio is the financial instrument for internal audit, solvency monitoring by the investor and banking supervision for OPE—Calculation of RWA for operational risk, new version in force on January 1, 2023. It is part of the entity's process to meet the three minimum conditions required by BCBS for the use of the standardized approach: (a) Its board of directors and senior management, as appropriate, are actively involved in the oversight of the operational risk management framework; (b) It has an operational risk management system that is conceptually sound and is implemented with integrity; and (c) It has sufficient resources in the use of the approach in the major business lines as well as the control and audit areas. Equity corresponds to the means made available to a bank by its shareholders or other investors, as well as to the profits it has made, and which have not been distributed. Economic Capital (EC) belongs to this last category of means. The OPE30 in force so far based on the mathematical approach (statistics and probabilities), will expire on December 31, 2022.