Steve Jobs
Active Member
Hi, I made a list of all practice questions related to calculating required capital for credit/market/operation risks and also economic capital and regulatory capital.
I'm confused regarding the difference between these capitals and whether the methods used in calculating each type of risk are similar. I appreciate your advise for the below questions:
1. The standardized approach in calculating credit risk is the same standardized approach for calculating regulatory capital or operational risk?
-For instance, according to this page, it seems that they are different:
http://en.wikipedia.org/wiki/Standardized_approach
2. If the question is asking to calculate capital, does it matter to know whether this capital is for credit/operational/market/regulatory? OR the important thing is to note which method is required, whether it's standardized approach or IRB or ...?
3. How come in Operational Book/Topic Area, it's asking to calculate for credit or market?
4. Is economic capital the same as regulatory capital?
I'm confused regarding the difference between these capitals and whether the methods used in calculating each type of risk are similar. I appreciate your advise for the below questions:
1. The standardized approach in calculating credit risk is the same standardized approach for calculating regulatory capital or operational risk?
-For instance, according to this page, it seems that they are different:
http://en.wikipedia.org/wiki/Standardized_approach
2. If the question is asking to calculate capital, does it matter to know whether this capital is for credit/operational/market/regulatory? OR the important thing is to note which method is required, whether it's standardized approach or IRB or ...?
3. How come in Operational Book/Topic Area, it's asking to calculate for credit or market?
4. Is economic capital the same as regulatory capital?
