What's new

operational risk

  1. L

    Capital Adequacy Ratio Calculation

    I know this isn't about the FRM exam itself but is there any excel sheets about the calculation for CAR and it's risk weighted assets under Basel III? I have paper to write about it and I can't seem to find a good simple explanation on how to calculate for it, sorry but the words confuse me on...
  2. F

    SMA approach for Operational risk

    Hi @David Harper CFA FRM Wrt calculation of business indicator -> ILDC + SC + FC, the complete formula for SC is extremely lengthly. In your opinion do we need to remember it, is it testable ?
  3. M

    Operational Risk - Optional Reading

    Hi, In the 2016 Learning objectives it lists Optional Regulatory Readings for Reference Candidates are expected to understand the objective and general structure of important international regulatory frameworks and general application of the various approaches for calculating minimum capital...
  4. Nicole Seaman

    P2.T7.603. Operational risk profiles and organizational designs (Cruz, Peters and Shevchenko)

    Learning objectives: Compare the typical operational risk profiles of firms in different financial sectors. Compare different organizational designs for a risk management framework. Questions 603.1. General Financial Services is a large, international firm with several business units. The...
  5. Nicole Seaman

    P2.T7.600. Operational risk event risk categories (Cruz, Peters and Shevchenko)

    Learning outcome: Describe the seven Basel II event risk categories and identify examples of operational risk events in each category. Please note that the Bank for International Settlement (BIS) is proposing a single, simplified method for the estimation of operational risk capital called the...
  6. Nicole Seaman

    P2.T7.504. Operational risk capital modeling (Girling)

    Learning outcomes: Compare the basic indicator approach, the standardized approach and the alternative standardized approach for calculating the operational risk capital charge and calculate the Basel operational risk charge using each approach. Describe the modeling requirements for a bank to...
  7. Nicole Seaman

    P2.T7.412. Basel III operational risk, continued

    AIMs: Describe key guidelines for verification and validation of a bank's ORMF and ORMS. Describe key supervisory guidelines for the selection of a reference date for an internal loss. Describe key guidelines for the selection of a bank's Operational Risk Categories (ORCs). Explain key...
  8. Nicole Seaman

    P2.T7.411. Basel III operational risk

    AIM: Define gross loss and net loss and identify which specific items should be included or excluded in gross loss computations per the Basel committee. Describe the process and considerations suggested by the Basel committee for a bank to use in determining a loss data threshold. Describe the...