BFM Numericals Solved · Part 4: Risk and capital

Chapter 13: Operational risk capital

Capital for losses from failed processes, people, systems and outside events: the rule banks follow today, and the Basel III approach to come.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 13.1What operational risk coversp. 273
• 13.2The Basic Indicator Approachp. 273
• 13.3The Standardised Approachp. 274
• 13.4Basel III: the Business Indicatorp. 275
• 13.5Basel III: the loss multiplierp. 276
• Which formula? And four 30-second routesp. 277
• Exam traps and conventionsp. 278
• Practice: 20 questions in three roundsp. 279
• Answers, with every wrong option explainedp. 281
• Make it stickp. 283
• Chapter 13 on one pagep. 284

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.