"When quantifying capital requirement, Basel ii does not allow recoveries of losses to be included in the calculation"
"The recognition of insurance mitigation is limited to 20% of the total operational risk capital required."
“The bank should not use losses net of insurance recoveries inAMA models”意思是说recovery 其实是不应该计算进来的，但是insurance 呢？应不应该可以用来减少capital ？谢谢！
