To calculate the operational risk capital charge, the DI's activities are first divided into:

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Operational risk capital charge calculations often categorize a depository institution's (DI's) activities into broad areas such as retail banking, commercial banking, and 'all other activity' to assess the risk associated with different segments of operations. This categorization helps in applying specific risk weights or factors to calculate the necessary capital reserve to cover potential operational losses.

To Calculate the Operational Risk Capital Charge, the DI's Activities