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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?
A
Assuming a high positive correlation between operational loss severity and equity index movements during normal market conditions
B
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
C
Modeling operational losses by projecting an annual loss estimate and then evenly distributing the losses across the four quarters of the year
D
Incorporating forward-looking factors and idiosyncratic risk exposures into stressed operational loss estimates
