• Register
CFA Discussion Forum

FRM P2 - Weakness of Top-down Approach

0 votes

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 by azswercvfret (120 points)
edited 3 days ago by Concepts n Clarity

Your answer

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.