FRM Part II · FRM Exam Part II · High-level Summary of Basel III Reforms
Which of the following is a component of the Business Indicator under the Basel III operational risk framework?
The interest, leases and dividend component is one of the three Business Indicator components, alongside the services component and the financial component. The other options relate to counterparty, market risk or liquidity frameworks and are not part of the BI.
- AInterest, leases and dividend componentCorrect
- BCredit valuation adjustment component
- CMarket risk charge component
- DLiquidity coverage component
Explanation
The BI is the sum of three components: interest, leases and dividend; services; and financial. The other options are from different capital or liquidity frameworks.
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