riskmanagementhw8

riskmanagementhw8 - Operational risk questions 1. How much...

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1. How much is the proposed charge on operational risk approximately of the overall capital requirements by the Basle Committee? a) 10% b) 15% c) 12% d) 25% Sol.: c. 2. A definition of operational risk is: a) All the risks that are not currently captured under market and credit risk b) The potential losses due to a failure in the operational processes or in the systems that support them c) The risk of losses due to a failure in people, process, technology or due to external factors d) All of the above Sol.: d 3. Which of the following steps should be done first during risk management processes? a) Risk measurement b) Risk control c) Limit setting d) Risk identification Sol.: d 4. When measuring operational risk, the complete distribution of potential losses for each risk type is formed using: a) An insurance based volatility distribution b) Back office distributions c) An operational and catastrophic distribution d) A frequency and severity distribution Solution: d. The distribution of losses due to operational risk results from the combination of
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This note was uploaded on 02/27/2010 for the course MA 535 taught by Professor Prasad during the Spring '10 term at Stevens.

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riskmanagementhw8 - Operational risk questions 1. How much...

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