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The following information is provided by two business lines at Bank A about operational loss events: EI Retail Banking 10000 2% $20,000 Corporate Finance 120
The following information is provided by two business lines at Bank A about operational loss events: EI Retail Banking 10000 2% $20,000 Corporate Finance 120 1% PE LGE Lambda (a) LGE mean LGE Stdev 1 $4,000,000 $1,500,000 Calculate the aggregate operation loss capital charge assuming a perfect correlation between the two business lines. The following information is provided by two business lines at Bank A about operational loss events: EI Retail Banking 10000 2% $20,000 Corporate Finance 120 1% PE LGE Lambda (a) LGE mean LGE Stdev 1 $4,000,000 $1,500,000 Calculate the aggregate operation loss capital charge assuming a perfect correlation between the two business lines
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