
Ultimate access to all questions.
The CRO of a large bank has asked a group of risk managers to prepare a plan to implement the revisions to the Basel III guidelines finalized in December 2017. The bank expects to qualify as a global systemically important bank (G-SIB) by the time the revisions are implemented. Which of the following actions is most appropriate for the bank to take to comply with the revised Basel III guidelines?
A
Introduce an internally created model to determine the bank's operational risk capital.
B
Assign different credit risk weights for residential mortgages based on each mortgage's loan-to-value ratio.
C
Apply the advanced internal rating-based approach for certain types of credit exposures, such as exposures to banks and large corporations.
D
Decrease the bank's target level of its countercyclical buffer and its Basel III Tier 1 leverage ratio.