Which Approach Used in Calculating Capital to Cover Operational Risk

question 60

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.

---

Definitions:

Equity

Fairness or justice in the way people are treated, often discussed in the context of social policy, economics, or law.

Social Exchange

A theory that suggests social behavior is the result of an exchange process aimed at maximizing benefits and minimizing costs to individuals.

Passionate Love

An intense emotional state characterized by a powerful desire for another person, often accompanied by physiological arousal and a longing for mutual affection.

Superordinate Goals

Shared objectives that require cooperation among individuals or groups, often leading to reduced conflict.