Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Operational risk is not considered to be important in FI's and thus regulatory authorities assume that it is captured by an FI's general risk management framework.
B) Operational risk is considered to be important and thus the Basel Committee requires FI's to provision against their operational risk exposures.
C) Operational risk is considered to be important and thus the Basel Committee requires FI's to allocate capital against their operational risk exposures.
D) Operational risk is considered to be important; however, regulators are aware that FI's have well-functioning operational risk defence mechanisms in place.