Which of the Following Statements Is True

question 37

Multiple Choice

Which of the following statements is true?

• A)Operational risk is not considered to be important in FI's and thus regulatory authorities assume that it is captured by an FI's general risk management framework.
• B)Operational risk is considered to be important and thus the Basel Committee requires FI's to provision against their operational risk exposures.
• C)Operational risk is considered to be important and thus the Basel Committee requires FI's to allocate capital against their operational risk exposures.
• D)Operational risk is considered to be important; however, regulators are aware that FI's have well-functioning operational risk defence mechanisms in place.

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Definitions:

Unintended Synergistic Effect

An unexpected result arising from the combined action of different substances or elements, especially in the context of medications or chemicals, where the combined effect is greater than the sum of their individual effects.

Specialists

Professionals with a deep level of expertise and knowledge in a specific field or area of study.

Drug Addict

An individual who experiences a compulsive and sometimes uncontrollable need for and use of drugs, despite adverse consequences.

Cleft Palate

A birth defect characterized by a split or opening in the roof of the mouth, which can affect speech, eating, and may require surgical correction.