Reducing Operational Risk Charge
Can someone explain how the 3% charge can be adjusted downward? A quote from the source text was included, but it did not help me understand how the operational risk charge would go down.
Thanks!
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Can someone explain how the 3% charge can be adjusted downward? A quote from the source text was included, but it did not help me understand how the operational risk charge would go down.
Thanks!
Comments
The reduction may have to do with the life insurance subsidiary also accounting for operational risk.
That excerpt is the extent to which Odomirok discusses this reduction. It is mentioned in passing, rather than getting into how it is actually done. So, I don't think you should expect an exam question on this.