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

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

View Answer

Answer: D

Explanation:

Choice ‘d’ represents the Basel II requirement, all other choices are incorrect.