SQF
GFSI-benchmarked certification for food safety management systems
Basel III
Global framework for bank capital, leverage, liquidity standards
Quick Verdict
SQF ensures food safety certification for global supply chains, while Basel III mandates capital and liquidity standards for banks. Food firms adopt SQF for market access; banks comply with Basel III to meet regulatory resilience requirements and avoid penalties.
SQF
SQF Food Safety Code Edition 9
Key Features
- Modular architecture: Module 2 plus sector-specific GMPs
- HACCP-based food safety plan with validation/verification
- GFSI-benchmarked global certification for supply chain
- Mandatory full-time onsite SQF Practitioner role
- Say-do-prove implementation triad with internal audits
Basel III
Basel III: Finalising post-crisis reforms
Key Features
- Strengthened CET1 capital requirements and buffers
- Non-risk-based leverage ratio minimum 3%
- Liquidity Coverage Ratio for 30-day stress
- Net Stable Funding Ratio for structural stability
- Enhanced Pillar 3 RWA disclosure templates
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
SQF Details
What It Is
SQF Food Safety Code Edition 9 is a GFSI-benchmarked certification program administered by SQFI. It provides a HACCP-based framework for food safety management across the supply chain, from farm to fork. Scope covers manufacturing, storage, distribution via modular structure.
Key Components
- **Module 2Universal system elements (management commitment, HACCP plan, verification, traceability).
- Sector modules (e.g., Module 11 GMPs for processing).
- ~200 auditable clauses emphasizing PRPs, food defense, allergens.
- Built on Codex HACCP; certification via third-party audits with scoring.
Why Organizations Use It
- Meets retailer mandates for market access.
- Reduces recalls, audit duplication; aligns with FSMA.
- Enhances resilience, supplier controls, food safety culture.
- Builds stakeholder trust through credible GFSI recognition.
Implementation Overview
Phased approach: gap analysis, document HACCP/PRPs, train staff, internal audits, certify. Applies to all sizes in food sectors globally; requires SQF Practitioner, annual audits.
Basel III Details
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, focusing on enhancing capital quality, constraining leverage, and ensuring liquidity resilience. The primary scope covers internationally active banks globally, using a multi-metric, risk-based approach supplemented by simpler non-risk metrics.
Key Components
- **Three PillarsPillar 1 (capital, leverage, liquidity requirements); Pillar 2 (supervisory review/ICAAP); Pillar 3 (disclosures for market discipline).
- Capital ratios: CET1 ≥4.5%, Tier 1 ≥6%, Total ≥8%, plus buffers (conservation 2.5%, countercyclical, G-SIB).
- Leverage ratio ≥3%; LCR ≥100%; NSFR ≥100%.
- Built on revised RWA methods, output floor; no fixed controls, ongoing compliance via supervisory audits.
Why Organizations Use It
- Mandatory via national laws for banks; avoids fines, restrictions.
- Boosts resilience, reduces systemic risk; improves funding costs, investor trust.
- Strategic: optimizes balance sheets, enhances competitiveness.
Implementation Overview
- Phased enterprise transformation: governance, data systems, models, training.
- Gap analysis, parallel runs, Pillar 3 reporting.
- Applies to large banks worldwide; supervisor-led audits, no external certification.
Key Differences
| Aspect | SQF | Basel III |
|---|---|---|
| Scope | Food safety management and quality across supply chain | Bank capital, leverage, liquidity resilience |
| Industry | Food manufacturing, storage, distribution globally | Internationally active banks and financial institutions |
| Nature | Voluntary GFSI-benchmarked certification | Mandatory prudential regulatory standards |
| Testing | Annual third-party audits, unannounced checks | Supervisory review, stress tests, disclosures |
| Penalties | Loss of certification, market access denial | Fines, asset caps, business restrictions |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about SQF and Basel III
SQF FAQ
Basel III FAQ
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