Advantages of having the operational risk function owned by the Chief Compliance Officer include:
* Maintaining an independent operational risk function.
* Linking the operational risk function closely with the compliance function to leverage data and assessment activities.
* Quickly inheriting an existing reporting structure, established meeting schedules, and functional reporting cycles from the compliance function. However, according to Basel II Accord, the operational risk function should not report directly into the audit function; it should have its own distinct reporting line to maintain independence.