Which risk management approach involves aggregating risk indicators from business drivers, and which involves developing hypothetical events for specific business activities?

Question 1 (Scorecard approach): Step 1: Identify the nature of the scorecard approach. The scorecard approach aggregates risk indicators from high-level business drivers to estimate overall operational risk. Step 2: Match to options. It is typically classified as a top-down approach. Answer: 4 4 Question 2 (Scenario analysis): Step 1: Identify the nature of scenario analysis. Scenario analysis involves developing detailed hypothetical events for specific business activities or processes. Step 2: Match to options. This focuses on granular, specific risks, which is a micro level. Answer: 2 2