Methodology for calculating operational risk capital


Which of the following statements about its methodology for calculating an operational risk capital charge in Basel II is correct?

A. Basic indicator approach is suitable for institutions with sophisticated operational risk profile.

B. Under the standardized approach, capital requirement is measured for each of the business line.

C. Advanced measurement approaches will not allow an institution to adopt its own method of assessment of operational risk.

D. AMA is less risk-sensitive than the standardized approach.

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Finance Basics: Methodology for calculating operational risk capital
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