Given the context of Basel II and Basel III regulations for operational risk governance, what specific actions should the manager propose for the bank to improve its operational risk management procedures? Additionally, how can the bank prepare to adopt the Basel II standardized approach for calculating its operational risk regulatory capital?

Exam-Like

Use third-party outsourcing agreements to replace most internal controls performed by senior managers and business line managers.

3.1%

Develop an internal approach to model the distribution of operational risk losses and use it to determine the bank's regulatory capital.

25.0%

Require an independent review of the bank's operational risk management framework.

59.4%

Designate the risk management function as the primary owner of risk exposures within each business line.

12.5%

Financial Risk Manager Part 2