The Standardized Approach in Calculating Capital to Cover Operational Risk

question 132

True/False

The Standardized Approach in calculating capital to cover operational risk requires DIs to separate activities into business units from which a capital charge is determined based on the amount of operational risk in each unit.

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Definitions:

Paid

Receiving money or compensation in exchange for work or services rendered.

Bilateral Authority

The power or governance shared by two parties, typically in the context of decision-making processes or agreements.

Managerial Authority

The power vested in managers to make decisions and direct subordinates in the organization to achieve company objectives.

Employee Voice

Refers to the ways in which employees can express their opinions, concerns, and suggestions to their employers, often through mechanisms like staff meetings or suggestion boxes.