Calculation of the "Add-On" to the Risk-Based Capital Ratio to Measure

question 73

Multiple Choice

Calculation of the "add-on" to the risk-based capital ratio to measure operational risk

• A)may be done using the Basic Indicator Approach.
• B)may be done using the Standardized Approach.
• C)may be done using the Advanced Measurement Approach.
• D)All of the above.
• E)Answers A and B only.

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Definitions:

Expert Power

The influence and authority a person has as a result of their expertise, skills, or knowledge.

Referent Power

A form of power that stems from being admired or respected, often due to charismatic qualities or identification with the person who has the power.

Legitimate Power

The authority an individual has because of their position in an organization's hierarchy, contributing to their ability to influence others.

Coercive Power

A form of power that is based on the ability to force someone to comply through threats or punishment.