Assignment:
Which of the following statements regarding characteristics of operational risk loss data and operational risk modeling is correct?
a. Operational risk losses tend to be negatively related to the size of the institution.
b. External loss data often exhibits capture bias as minimum loss thresholds for collecting loss data are uniform across all institutions.
c. The likelihood that an operational risk loss is reported is positively related to the size of the loss.
d. Operational risk losses are modeled using techniques that are used in interest rate modeling.