Validation of an operational risk model to estimate economic capital is based on a(n): A. Arbitrage Pricing Theory (APT). B. sensitivity analysis. C. Capital Asset Pricing Model (CAPM). D. Option Pricing Model (OPM).
The validation of an operational risk model is based on sensitivity analysis, stress testing, back testing, and benchmarking (and not on CAPM, APT, or OPM).
