Which of the Following Statements Is True

question 37

Multiple Choice

Which of the following statements is true?

• A)Operational risk is not considered to be important in FI's and thus regulatory authorities assume that it is captured by an FI's general risk management framework.
• B)Operational risk is considered to be important and thus the Basel Committee requires FI's to provision against their operational risk exposures.
• C)Operational risk is considered to be important and thus the Basel Committee requires FI's to allocate capital against their operational risk exposures.
• D)Operational risk is considered to be important; however, regulators are aware that FI's have well-functioning operational risk defence mechanisms in place.

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Definitions:

Affiliation

A feeling or state of connectedness with a group or another individual, often characterized by shared interests or goals.

Cognitive Ability

The capacity of an individual to perform mental processes of understanding, reasoning, problem solving, and decision making.

Motivation-Performance Relationship

The dynamic link between an individual's level of motivation and their subsequent performance in tasks or activities.

Achievement

The accomplishment of a goal or the attainment of success or proficiency in a skill, often recognized through awards or other forms of acknowledgement.