Operational Risk and FI Insolvency in Banking
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Questions and Answers

What are the two areas that arise with the increase in operational risk?

Operational Risk and FI Insolvency and Consumer Protection

According to the Basel Committee, why should banks devote necessary resources to quantify operational risks?

Operational risks are sufficiently important for banks to incorporate them into their assessment of their overall capital adequacy

What are the three methods proposed by the Basel Committee for calculating the required minimum capital to protect against operational risk?

The Basic Indicator Approach, The Standardised Approach, and the Advanced Measurement Approach

As banks develop their operational measurement systems, what approach are they expected to move along?

<p>They are expected to move along the available approaches</p> Signup and view all the answers

Which approach is more appropriate for banks that are more exposed to significant operational risk?

<p>A more complex approach than that of the Basic Indicator Approach</p> Signup and view all the answers

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