F2016 Q18
I have a quick question. Why Q18b, the capital required for operational risk doesn't consider premium arising from intra-group pooling components in the formula
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I have a quick question. Why Q18b, the capital required for operational risk doesn't consider premium arising from intra-group pooling components in the formula
Comments
They don't give you any values for assumed or ceded premium for intra-group pooling so all you can do is assume there's isn't any intra-group pooling. The contribution to operational risk is then 0.
(They give you the risk factors for intra-group pooling but no premiums to multiply it by.)