What It Is

ISO/IEC 17025:2017 is an international standard specifying general requirements for the competence, impartiality, and consistent operation of testing and calibration laboratories. It uses a risk-based, performance-oriented approach with eight core clauses focusing on technical validity.

Key Components

• General, structural, resource, process, and management system requirements (Clauses 4-8).
• Covers impartiality/confidentiality, personnel competence, metrological traceability, measurement uncertainty, method validation.
• Built on risk-based thinking; Option A/B for management systems.
• Leads to accreditation by ILAC-recognized bodies attesting technical scope.

Why Organizations Use It

• Enables market access and regulatory acceptance of results.
• Mitigates risks from invalid data in safety-critical decisions.
• Builds stakeholder trust via demonstrated competence.
• Provides competitive edge in tenders and supply chains.

Implementation Overview

• Phased gap analysis, documentation, technical validation, audits.
• Applies to labs globally; scalable by size/industry.
• Requires proficiency testing, witnessed assessments for accreditation.

What It Is

Basel III is the global prudential regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-2008 financial crisis. It strengthens bank resilience by enhancing capital quality and quantity, introducing leverage and liquidity constraints, and improving risk measurement comparability. The approach integrates risk-weighted assets (RWA) with non-risk-based metrics and buffers.

Key Components

• **Three PillarsPillar 1 (capital ratios, leverage ratio, LCR/NSFR); Pillar 2 (supervisory review/ICAAP); Pillar 3 (disclosures).
• Minimums: CET1 4.5%, Tier 1 6%, Total capital 8%; 2.5% conservation buffer; 3% leverage ratio; 100% LCR/NSFR.
• Revised RWA standards, output floor (72.5%), standardized operational risk (SMA).
• National implementation with no central certification.

Why Organizations Use It

Mandatory via jurisdictional laws for internationally active banks; reduces systemic risk, constrains leverage, ensures liquidity. Boosts funding costs efficiency, market confidence, RWA comparability, and strategic asset allocation.

Implementation Overview

Phased enterprise program: gap analysis, data/system upgrades, model validation, governance. Targets large banks globally; involves QIS, parallel runs, Pillar 3 reporting, ongoing supervisory engagement.