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FRM P2 - Weakness of Top-down Approach

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Which of the following is a weakness of the top-down approach to measuring operational risk?

A. It fails to consider historical information

B. You cannot use earnings volatility as an indicator of risk potential in this approach

C. Information on specific sources of risk is not provided

D. It is based on the specific mapping of business units, and not the overall organization

asked Sep 8, 2017 by anonymous
edited Sep 15, 2017 by Concepts n Clarity

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