Your Bank: Position as on 31.03.2020 Crores 1,000 1.LC for import of goods A) 20% to AAA rated companies B) 80% to BBB rated companies 2.Standby LC as financial Guarantee (A Rated Companies) 3.Financial Guarantee (AA rated companies) 500 400 4.Letter of credits of other banks confirmed by our Bank. 100 Using above information, please answer following questions: 4a. What is Credit conversion factor on each of the above items. 4b. What is the exposure under each of the above categories? 4c. Calculate the Risk weight on above exposures. Calculate minimum capital funds required for above exposures. What do you mean by operational risk? Briefly discuss the methods involved in mitigation of operational risks. Your Bank: Position as on 31.03.2020 Crores 1,000 1.LC for import of goods A) 20% to AAA rated companies B) 80% to BBB rated companies 2.Standby LC as financial Guarantee (A Rated Companies) 3.Financial Guarantee (AA rated companies) 500 400 4.Letter of credits of other banks confirmed by our Bank. 100 Using above information, please answer following questions: 4a. What is Credit conversion factor on each of the above items. 4b. What is the exposure under each of the above categories? 4c. Calculate the Risk weight on above exposures. Calculate minimum capital funds required for above exposures. What do you mean by operational risk? Briefly discuss the methods involved in mitigation of operational risks