A financial institution experienced significant damage to several of its commercial branch structures due to a hurricane. In order to accurately document this incident in the operational risk event database, an analyst at the bank needs to determine the relevant expenses to include. Given this context, which of the following expenses associated with this hurricane incident should be reported as part of the operational loss?

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Costs of insurance premiums paid to insure the buildings before the storm took place

9.7%

A provision for the estimated opportunity costs of lost banking business at the affected branches

19.4%

Legal costs paid to obtain construction permits to rebuild the destroyed branch buildings

61.3%

Costs of a program to train branch managers on ways to prepare buildings to mitigate potential damage from future hurricanes

9.7%

Financial Risk Manager Part 2