medium · FRM Part 2 Operational Risk
Under the Standardized Measurement Approach (SMA) for operational risk, the Business Indicator (BI) is composed of three components.
Which of the following is NOT one of them?
- The Internal Fraud and Legal Settlement Component (IFLC)
- The Financial Component (FC), covering net P&L items.
- The Services Component (SC), covering fee-based activity.
- The Interest, Lease, and Dividend Component (ILDC).
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