In the Standardised Approach to Operational Risk Capital, FIs Are

question 57

True/False

In the standardised approach to operational risk capital, FIs are required to map their overall gross income into eight business lines that are predetermined by the bank regulator.

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Definitions:

Residual Income

The net income that exceeds the minimum required return on investment or capital; often used as a performance measure in managerial accounting.

Investment Opportunity

An option to allocate resources with the expectation of generating a return or profit in the future.

Turnover

In business, refers to the rate at which employees leave a company and are replaced by new hires; can also refer to the total sales in a given period.

Turnover

A financial metric indicating the rate at which a company's inventory is sold and replaced over a period.