Which Approach Used in Calculating Capital to Cover Operational Risk

question 6

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 these.

---

Definitions:

Scientific Data

Information collected through systematic observation or experimentation, used to increase understanding or knowledge in the sciences.

Clinical Judgment

The process by which healthcare professionals make decisions based on their knowledge, experience, and assessment of patient situations.

Standardized Interventions

Medical or health interventions that are based on evidence and can be applied universally to treat or prevent specific conditions.

Best Interventions

Optimal actions or treatments selected after assessment to achieve desired health outcomes or solve specific problems.