A bank’s Chief Risk Officer is considering persuading the government’s regulatory officials that it is appropriate for the bank to adopt Advanced Measurement Approach (AMA) for the calculation of the bank’s capital requirement for the operational risk. Which of the following statements about AMA is incorrect?

A、The AMA would need to generate the operational risk loss distribution which requires the modeling of loss frequency using Poisson Distribution and loss severity using Uniform Distribution.
B、After generating the operational loss distribution by AMA, the operational risk capital requirement is calculated by the difference of 99.9% one-year VaR and the expected loss.
C、One concern for the AMA is the insufficient internal data for the modeling of the loss distribution function so that utilizing external data would serve as a solution for the concern.
D、When obtaining external data, one would need to make some adjustment before using it in the AM
A、 For example, for external operational loss data from a much larger bank, one would need to scale it down relatively.