Along with the value at risk model,which is the other model that determines each bank's unique market risk exposure and the amount of capital it needs?
A)Internal modeling.
B)Systemic modeling.
C)Credit risk modeling.
D)Borrower credit ratings.
E)Damage testing.

Question

Quizplus · Accepted Answer

Internal modeling is the other model used to determine a bank's unique market risk exposure and the amount of capital it needs. This involves using the bank's own proprietary models to calculate risk and capital requirements, subject to regulatory approval. The value at risk model is just one component of internal modeling.

Along with the Value at Risk Model,which Is the Other