easy · Frm Part 2 Operational Risk
What is the relationship between the Business Indicator (BI) and the Business Indicator Component (BIC)?
- The BIC is calculated by applying marginal coefficients to the BI.
- They are identical and used interchangeably in Basel III.
- The BI is always 12% of the BIC.
- The BIC is the raw sum of the three BI components.
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