The Standardized Approach in Calculating Capital to Cover Operational Risk

question 77

True/False

The Standardized Approach in calculating capital to cover operational risk requires DTIs 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:

Employees' Contracts

Legal agreements between employers and employees detailing the terms of employment, including duties, duration, compensation, and grounds for termination.

Occupational Safety

Measures and procedures implemented to ensure the safety and health of employees in the workplace, aiming to prevent workplace accidents, injuries, and diseases.

Environmental Monitoring

The systematic collection of data regarding the natural environment and wildlife, often used to assess the health of the environment or to ensure compliance with environmental regulations.

Hazardous Materials

Substances that pose potential risks to health, safety, or the environment when mishandled or released.