hard · FRM Part 2 Operational Risk
A bank's Business Indicator (BI) for the current period is derived from three components: an Interest, Leases and Dividends Component (ILDC) of euro4.5bn, a Services Component (SC) of euro3.2bn, and a Financial Component (FC) of euro1.3bn. Under the Standardized Measurement Approach (SMA), the marginal BIC coefficients are 12% for the first euro1bn of BI, 15% for the portion from euro1bn to euro30bn, and 18% above euro30bn.
What is the Business Indicator Component (BIC)?
- €1.08 bn
- €1.32 bn
- €1.62 bn
- €1.35 bn
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