Which of the following statements concerning the measurement of operational risk is correct?
　　A. Economic capital should be sufficient to cover both expected and worst-case operational risk losses.
　　B. Loss severity and loss frequency tend to be modeled with lognormal distributions.
　　C. Operational loss data available from data vendors tend to be biased towards small losses.
　　D. The standardized approach used by banks in calculating operational risk capital allows for different beta factors to be assigned to different business lines.
　　Answer:D
　　In the standardized approach to calculating operational risk, a bank‘s activities are divided up into several different business lines, and a beta factor is calculated for each line of business Economic capital covers the difference between the worst-case loss and the expected loss. Loss severity tends to be modeled with a lognormal distribution, but loss frequency is typically modeled using a Poisson distribution. Operational loss data available from data vendors tends to be biased towards large losses.