📝 One-liners · 65 cards
Operational and integrated risk
What is operational risk as defined by Basel II?
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. It includes legal risk but excludes strategic and reputational risk.
What is 'people risk' as a subcategory of operational risk?
Risk of loss from human error, fraud, or misconduct.
Which three approaches does Basel II prescribe for measuring operational risk capital?
Basel II prescribes the Basic Indicator Approach (BIA), the Standardised Approach (SA), and the Advanced Measurement Approach (AMA) for calculating operational risk capital charge.
What is 'process risk' in the context of operational risk?
Risk from failed or inadequate internal processes and procedures.
🔒
Unlock 65 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Operational and integrated risk.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days