Explanation:
The beta factors used in the standardized approach for operational risk are as follows: trading and sales: 18%; retail banking: 12%; agency services: 15%; asset management: 12%.
(Book 4, Module 53.1, LO 53.b)
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Question 65
The standardized approach for calculating operational risk capital requirements uses beta factors for a given business line and annual gross income for business lines over a 3-year period. Which of the following business units has the highest beta factor?
A
Trading and sales.
B
Retail banking.
C
Agency services.
D
Asset management.
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