line B 1. Corporate finance 18% 2. Trading and Sales 18% 3. Retail banking 12% 4. Commercial banking 15% 5.Payment and
Given a bank has the following business lines with their corresponding operational risk exposure denoted by B (Beta)
Business line B
1. Corporate finance 18%
2. Trading and Sales 18%
3. Retail banking 12%
4. Commercial banking 15%
5.Payment and settlement 18%
6. Agency services 15%
7. Asset Management 12%
8. Retail banking 12%
b) Explain how operational risk capital is calculated under the Internal measurement approach (4).