In the scenario of conducting an external audit for a US-based bank's operational loss modeling as part of their capital planning process, which specific procedure or assumption would align most appropriately with the guidelines established by the Federal Reserve for capital planning?

Exam-Like

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

7.1%

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

17.9%

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

10.7%

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

64.3%

Financial Risk Manager Part 2