[Verse 1] Banks must cushion every shock with capital reserves Basel Three demands they hold what market stress deserves Common equity tier one, the golden standard high Six percent minimum or regulators ask you why [Chorus] Five frameworks guard the fortress walls C-A-L-M-C when crisis calls Capital, Asset quality, Liquidity flows Management systems, Market exposure COSO umbrella covers all the rows [Verse 2] Liquidity coverage ratio keeps the taps from running dry Thirty days of stressed outflows, high-quality assets nearby Net stable funding ratio locks in longer-term support Matching asset maturity with funding transport [Chorus] Five frameworks guard the fortress walls C-A-L-M-C when crisis calls Capital, Asset quality, Liquidity flows Management systems, Market exposure COSO umbrella covers all the rows [Verse 3] Credit risk gets weighted by the borrower's grade Operational risk through business indicators paid Market risk from trading books and interest rate swings Counterparty credit when derivative dealings bring [Bridge] Solvency Two for insurers, same principles apply Technical provisions backed by capital supply COSO Twenty-Seventeen orchestrates the dance Governance structure gives compliance its chance [Chorus] Five frameworks guard the fortress walls C-A-L-M-C when crisis calls Capital, Asset quality, Liquidity flows Management systems, Market exposure COSO umbrella covers all the rows [Outro] Pillar One for minimums, Pillar Two for review Pillar Three transparency shows what supervisors view Enterprise risk integrated, regulatory aligned Financial fortress fortified, peace of regulatory mind
← 4 COBIT (Control Objectives for Information and Related Technologies) | 6 SOC 2 and Assurance Frameworks →