In the context of a US-based bank's capital planning process, which specific modeling processes or assumptions would an external auditor consider most appropriate, in accordance with the Federal Reserve's guidelines for capital planning?

Exam-Like

Assuming a high positive correlation between operational loss severity and equity index movements during normal market conditions

9.5%

Using a net charge-off model to predict shorter-term credit losses and a roll-rate model to predict losses over a longer time horizon

7.9%

Modeling operational losses by projecting an annual loss estimate and then evenly distributing the losses across the four quarters of the year

15.9%

Incorporating forward-looking factors and idiosyncratic risk exposures into stressed operational loss estimates

66.7%

Financial Risk Manager Part 2