8008 Exam Dumps | In respect of operational risk capital calculations, the Basel II accord recommends a confidence level

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PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
PRMIA.8008.v2021-08-28.q125
Question 15

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Question 15/125

In respect of operational risk capital calculations, the Basel II accord recommends a confidence level and time horizon of:

A. 99.9% confidence level over a 10 day time horizon

B. 99% confidence level over a 10 year time horizon

C. 99% confidence level over a 1 year time horizon

D. 99.9% confidence level over a 1 year time horizon

Correct Answer: D

Explanation
Choice 'd' represents the Basel II requirement, all other choices are incorrect.

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