Basel II proposes three approaches to estimate capital for operational risk:

1. Basic Indicator: the entity's average "gross operating margin" for the last three years, which is defined as the sum of financial revenue and revenue from services less financial costs and service costs.
   
   
2. Standard: the entity's activities are classified into eight lines of business and it calculates the average "gross operating margin" of each line of business for the last three years.
   
   
3. Advanced Measurement: is based on:

• Data from internal loss events.
• Data from loss events outside the entity.
• Scenario analysis.
• Business environment and internal control factors.