rise to operational risk. Operational risk naturally arises whenever the institution faces a trade-off between adopting a … risks the institution faces. While operational risk and market risk induce adopting a less sophisticated model, model risk … induces adopting a more sophisticated one. The negative relation between operational risk and model sophistication implies …

One of the main challenges that banks face in modeling operational risk is the instability of risk estimates caused by … scaled external data improves the robustness of operational risk estimates. In addition, our scaling method helps depict the … testing operational risk to severe macroeconomic shocks …

Operational risk is a substantial source of risk for US banks. Improving the performance of operational risk models … losses results from them capturing hard to quantify factors such as the quality of operational risk controls, the risk …

the market practices we have observed over several years concerning the measurement and management of operational risk …

Financial and operational risk management are central concepts at the intersection of finance, operations, and … commodity risk management. Prior research has examined the effects of either financial or operational risk management, yet … financial and operational risk management decisions of 58 gold miners from 2003 to 2011 to empirically assess the effects of …

Over the past three decades, Operational risk has evolved as a disastrous risk threatening the survival of financial … banks to severe challenges in the form of development of both operational risk events database and robust risk measurement … bases of historical Operational risk events and sophisticated measurement models are developed. At the same time, maturity …

Basel's new standardized approach (SA) for operational risk capital may allow for regulatory arbitrage through the use …