BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Individual Banks
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World Bank
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Individual Country Regulator
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International Monetary Fund
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Detailed explanation-1: -The main objective of the BCBS is to strengthen banking regulation, supervision and practices worldwide, in order to improve banks’ solvency, liquidity, governance and risk management, and to bring about greater financial stability globally.
Detailed explanation-2: -In December 2017, the Basel Committee on Banking Supervision introduced the new standardised approach for calculating operational risk capital charge, which replaces all operational risk approaches under Basel II.
Detailed explanation-3: -Structure of the standardised approach The standardised approach capital requirement is the simple sum of three components: the capital requirement under the sensitivities-based method, the default risk capital (DRC) requirement and the residual risk add-on (RRAO).
Detailed explanation-4: -The fundamental principles are: Completeness, integrity, and granularity: both internal and external reporting system must cover all the main risks the bank is exposed to. Moreover, they must do it efficiently and have an appropriate system of controls.