rahul.goyl
Member
Hi David,
Could you plz explain why D is the Answer. I just have answers without any explanation. Where does Gamma comes into picture when calculating Ops Risk.
Which of the following best reflects the Committee on Banking Supervision's approach to calculating regulatory capital for operational risk?
Choose one answer.
a. St1: Operational risk capital charge would be linked to fixed percentage of a single risk indicator.
b. St2: Operational risk capital charge would be determined from a decomposition of business into standardized lines associated with broadly defined risk exposure weighted by a beta factor.
c. St3: Operational risk capital charge would be determined from a decomposition of business into standardized lines associated with risk exposures and a gamma term taking into account the operational loss of the institution
d. All the statements are correct
Regards,
Rahul
Could you plz explain why D is the Answer. I just have answers without any explanation. Where does Gamma comes into picture when calculating Ops Risk.
Which of the following best reflects the Committee on Banking Supervision's approach to calculating regulatory capital for operational risk?
Choose one answer.
a. St1: Operational risk capital charge would be linked to fixed percentage of a single risk indicator.
b. St2: Operational risk capital charge would be determined from a decomposition of business into standardized lines associated with broadly defined risk exposure weighted by a beta factor.
c. St3: Operational risk capital charge would be determined from a decomposition of business into standardized lines associated with risk exposures and a gamma term taking into account the operational loss of the institution
d. All the statements are correct
Regards,
Rahul
