operational risk capital?

Which of the following is not an approach proposed by the Basel II framework to compute

operational risk capital?
A . Basic indicator approach
B . Factor based approach
C . Standardized approach
D . Advanced measurement approach

Answer: B

Explanation:

Basel II proposes three approaches to compute operational risk capital – the basic indicator approach (BIA), the standardized approach (SIA) and the advanced measurement approach (AMA). There is no operational risk approach called the factor based approach.