Which Approach Used in Calculating Capital to Cover Operational Risk

question 92

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 above.

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Definitions:

Aggression

Behaviors or attitudes that may be directed towards others or oneself, embodying actions of anger, hostility, or violence.

Commitment

A state or quality of being dedicated to a cause, activity, or relationship, often implying a sense of obligation or responsibility.

Control

The ability to shape or control the actions of others and the direction of events.

Externals

People who perceive the ability to attain reinforcements as being largely outside themselves.