Q1 Ops risk (Rnd 1) flash quiz

[higaurav]

Dear David,

In question 1)....Respectively, which is preferred or implied if the operational risk problem is (i) to measure economic capital..as I understood from the readings that basically BU approach requires more detailed understanding. For this reason, I thought that economic capital calculation has to be BU rather than TD (as all the various methods explains will require detailed understanding and can not be carried out at a superficial level.

Also, just want to check that if there is any section where you put explanation to flash quiz answers, pls let me know.

Rgrds,
OM

 

[David Harper CFA FRM]

Om,

Please see this thread. I agree with you. But these flash questions are tied to the 2008 FRM AIMs - this refers to the assigned Linda Allen readings where she has top down as preferred for EC b/c she is (probably) thinking about Basel II BIA & SA. I don't quite agree but these flash questions are quite tied to the readings.

The answers are on the quiz! Just click the magnifying glass (or hotkey 'X' if the flash quiz is active window). Please let me know you can find the explains!

David

 

[higaurav]

David,

Understand your point,and for now will keep this in mind at least for the exam purposes!

Also, am able to see the explains

Thanx for your prompt response,

OM