16-47 Regulators have proposed that operational risk should be measured for the purpose of meeting overall capital adequacy.

Question

Quizplus · Accepted Answer

Regulators have indeed proposed that operational risk should be measured for the purpose of meeting overall capital adequacy, as part of the Basel Accords. Specifically, the Basel II Accord introduced a standardized approach and an advanced measurement approach for calculating operational risk capital requirements for banks and other financial institutions. This was further refined and expanded upon in the Basel III Accord.

16-47 Regulators Have Proposed That Operational Risk Should Be Measured