Advantages of having the operational risk function owned by the Chief Compliance Officer include:
* Maintaining an independent operational risk function.
* Linking the operational risk function closely with the compliance function to leverage data and assessment activities.
* Quickly inheriting an existing reporting structure, established meeting schedules, and functional reporting cycles from the compliance function. However, according to Basel II Accord, the operational risk function should not report directly into the audit function; it should have its own distinct reporting line to maintain independence.

Present Value of a Basis Point (PVBP) measures the change in the value of a bond when the yield changes by one basis point (0.01%). This measure helps quantify the interest rate risk of a bond by indicating how much its price will fluctuate with small changes in yield.

* The expected loss (EL) on a credit instrument is calculated by multiplying the probability of default (PD), the loss given default (LGD), and the exposure at default (EAD). This formula captures the risk of default and the potential loss severity.
* Other options (B, C, D) incorrectly represent the relationship between these components.
References:
* How Finance Works: "Expected Loss = Probability of Default x Loss Given Default x Exposure at Default"