AMA uses four types of data element for calculating the operational risk capital
charge: Internal loss data, external data, scenario analyses and business environment
& internal control factors. The combination of these data elements in sufficient for
estimating the operational risk but responsibility goes on the (FI) management to utilize
these data elements with the right combinations to adequate with the level of risk to
which it is exposed. As there are various issues which causes barrier in the
implementation of AMA in (FI). As in case of Internal loss data which supposed to
use in AMA model is usually expected that it come from the risk management practice
which reflect the (FI) risk profile but if the validation of the internal loss data is not
verifiable with respect to the data quality, which is required for AMA models, then the
results have no worth regarding identification of operational risk.