The explanation to question 255 on riskprep is:
The Basel II framework allows the use of the basic indicator approach, the standardized approach and the advanced measurement approaches for operational risk. There is no approach called the ‘internal measurement approach’ permitted for operational risk.
But the handbook has a whole section on Internal Measurement Approach.
And wiki http://en.wikipedia.org/wiki/Basel_II has this:
For operational risk, there are three different approaches – basic indicator approach or BIA, standardized approach or STA, and the internal measurement approach (an advanced form of which is the advanced measurement approach or AMA).
Is Internal Measurement Approach is a valid Ops Risk approach under Basel II, or no?
Can somebody please clarify?