The Basel II Accord recommends basic methods for assessing operational risk that estimate the risk by:
A. Applying a floating percentage to operating assets based on their risk profiles.
B. Multiplying annual gross income by a set percentage.
C. Adding a premium to the credit risk measures used by the bank.
D. Adjusting the required capital by a fixed percentage oftotal bank assets.
Answer:B
The basic indicator approach and the standardized approach both muJtiply gross income by a set percentage to estimate operational risk.