Which of the Following Statements Is Not True with Respect

question 1

Multiple Choice

Which of the following statements is not true with respect to the proposed Basel II Accord?

• A)Basel II provides an incentive for banks to reduce their operational risk.
• B)The Accord provides for an alternative method of calculating credit risk in the form of the internal ratings-based (IRB) approach.
• C)Basel II should encourage banks to use more aggressive management.
• D)The Basel Committee defines operational risk as the risk of losses resulting from inadequate or failed internal processes or systems.

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Definitions:

Strategic Plan

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Standing Plan

A long-term approach created to be used repeatedly in situations that occur frequently within an organization.

Sexual Harassment

Unwanted or unwelcome behavior of a sexual nature that affects an individual's employment, interferes with work, or creates a hostile work environment.

Organisational Policy

A set of principles and rules designed to guide decisions and achieve rational outcomes within an organization.