What It Is

Capability Maturity Model Integration (CMMI) is a performance improvement framework for process maturity in development, services, and acquisition. Its primary purpose is to institutionalize repeatable processes for predictable delivery. Key approach uses staged maturity levels (0-5) and continuous capability progression via practice areas.

Key Components

• **4 Category AreasDoing, Managing, Enabling, Improving.
• 25 Practice Areas (v2.0) like Requirements Development, Configuration Management, Causal Analysis.
• Generic practices for institutionalization (policy, planning, monitoring).
• SCAMPI appraisals (Class A/B/C) for certification and benchmarking.

Why Organizations Use It

• Reduces rework, improves predictability, boosts ROI (e.g., 34% cost reduction).
• Meets contractual requirements in defense, regulated sectors.
• Enhances risk management, quality, customer satisfaction.
• Builds competitive edge via published maturity ratings.

Implementation Overview

• Phased: assessment, pilot, rollout, appraisal, sustainment.
• Involves gap analysis, training, tooling integration.
• Applies to mid-large organizations in IT, software, services globally.
• Requires authorized SCAMPI Class A for official ratings.

What It Is

Basel III is the international regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-global financial crisis. It establishes prudential standards for banks, enhancing capital quality and quantity, introducing leverage constraints, and mandating liquidity buffers via a multi-metric, risk-based approach with non-risk-based backstops.

Key Components

• **Three PillarsPillar 1 (capital ratios like CET1 4.5%, Tier 1 6%, total 8%; leverage ratio 3%; LCR/NSFR); Pillar 2 (supervisory review/ICAAP); Pillar 3 (disclosures for RWA comparability).
• Buffers (CCB 2.5%, CCyB, G-SIB); output floor (72.5% standardized RWA); no fixed controls but detailed standards.

Why Organizations Use It

Mandatory for internationally active banks via national laws; boosts resilience, curbs leverage, improves liquidity. Drives risk management, comparability, investor trust; shapes balance sheets for competitive funding and asset allocation.

Implementation Overview

Phased enterprise transformation: governance, data/IT upgrades, model validation, training, disclosures. Targets large banks globally; ongoing reporting, supervisory assessments via RCAP. (178 words)