FRM一级易错题精选:Which of the following is FALSE

Which of the following is FALSE regarding the use of scorecard data?

 
A. It usually results in higher capital charges than the use of historical data.
 
B. It is forward looking rather than backward looking.

C. It is more subjective because it relies upon the judgment of business line managers.
 
D. It more accurately captures the future benefits of risk management activities.

Answer:A

The use of scorecard data usually results in a lower capital charge than the use of historical loss data.