20-65 the Standardized Approach in Calculating Capital to Cover Operational

question 121

True/False

20-65 The Standardized Approach in calculating capital to cover operational risk requires DIs to separate activities into business units from which a capital charge is determined based on the amount of operational risk in each unit.

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Definitions:

Strategic Plan

A roadmap designed by an organization to outline its goals, strategies, and actions to achieve long-term success and competitive advantage.

Organizational Strategy

A long-term plan formulated by an entity to achieve specific goals and objectives, guiding its direction and allocation of resources.

Performance Standards

Benchmarks or criteria established by businesses or organizations to measure the quality and effectiveness of employee tasks and activities.

Indirect Compensation

Benefits provided by an employer that are not part of direct salary, such as health insurance, retirement plans, and paid leave.