Operation Risk Risk Weighted TAbles

[sulemanms202]

Is it necessary to memorize every single line item and detail in the Risk Weighted Assets table for ratios like LCR and NSFR at the FRM Level 2 operational risk exam? or for examples credit spread tables (market Risk - Internal models approach) or for instance Jump to default Credit quality category and Default risk weights.

there are lots of tables, learning this many tables more daunting that course itself, please guide is there a way around it, are we required to rote learn every single table and line item?!

thanks!

 

[sulemanms202]

can any one asnwer this, please

 

[David Harper CFA FRM]

Hi @sulemanms202 It's really really hard (impossible?) to give a definitive answer to a virtually universal memorization question. The strict and obvious answer is: No! You definitely do not need to memorize "every single line time and detail" in all of those tables.

I'll go way further: you really will not need to memorize most of those tables.

The harder (and better) question (IMO) is: which of them should you memorize, given there are very few that you should even bother to memorize? I think it's a short list because most of those tables, if needed, will be provided in the question .... We're updating our formula sheet, so I will make sure that we include specific guidance here ... Thanks,

 

[sulemanms202]

thank you sir, i get the idea, it is more of question of understanding what to build first, either roads or ability to develop electricity.
im grateful for time.