medium · FRM Part 2 Operational Risk
A bank is calculating its operational risk capital using the Standardized Measurement Approach (SMA). The Business Indicator (BI) is calculated at €35 billion.
Using the marginal coefficients (12% for ≤ €1 bn, 15% for €1 bn-€30 bn, and 18% for > €30 bn), what is the Business Indicator Component (BIC)?
- €6.30 billion
- €4.20 billion
- €5.37 billion
- €5.10 billion
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