Which of the following are Basel II Level 1 operational risk categories?

I. Clients, Products, and Business Practices II. Employment Practice and Workplace Safety III. Internal Fraud IV. Damage to Systems V. Unauthorized Trading

a. I only

b. I and II only

c. I, II, and III only

d. I, II, III, and IV only

e. All of the above A U.S. bank’s operational risk department has established an operational risk event data system, which is accessible on the intranet by all employees and requires the completion of several fields, some of which are mandatory. All operational risk loss events over $10,000 must be entered into the system. An employee in the trade support department has discovered that an error has been made by a trader. The trader has written a buy order on his blotter, but has entered a sell order into the trading systems. This has resulted in a loss of $150,000.
Using the information above, answer questions 2 through 4.