Which Approach Used in Calculating Capital to Cover Operational Risk

question 108

Multiple Choice

Which approach used in calculating capital to cover operational risk allow banks to rely on internal data for the calculation of regulatory capital requirements?

• A)Standardized approach.
• B)Advanced measurement approach.
• C)Basic indicator approach.
• D)Internal ratings-based approach.
• E)All of the options.

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Definitions:

Better Value

Describes a product or service that offers more favorable conditions or advantages for its cost compared to other options.

Competition

The rivalry between businesses or individuals over customers, market share, and resources.

Business Model Canvas

A strategic management tool used to develop new or document existing business models, visually outlining a company's value proposition, infrastructure, customers, and finances.

Value Creation

The process through which businesses or organizations develop products, services, or experiences that are valuable to customers, thereby driving growth or profitability.