Basel I (1988)→ Focusedonly on credit riskandmarket risk; operational risk wasnot yet included.
Basel II (2004)→ Introducedoperational risk as a separate category, subject tocapital requirements.
Basel III (2010)→ Strengthenedcapital and liquidity requirementsbut did not introduce operational risk.
Basel IV (2017, still evolving)→ Adjusts Basel III reforms but does not introduce operational risk as a new category.
Why Answer B is Correct
Basel II (2004) was the first to introduce operational risk as a risk requiring a capital charge.
Why Other Answers Are Incorrect
Option
Explanation
A. Basel I
Incorrect– Basel I focused oncredit risk and market risk, with no capital requirements for operational risk.
C. Basel III
Incorrect– Basel III strengthened Basel II but didnot introduce operational risk.
D. Basel IV
Incorrect– Basel IV refines Basel III but doesnot introduce operational risk as a new capital charge.
Basel II (2004) Operational Risk Framework
PRMIA Operational Risk Management Guidelines
PRMIA References for Verification
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit