Operational Risk Quantification

‘Operational Risk Quantification – going beyond traditional modelling approaches’

Operational risk quantification and measurement is a fundamental part of operational risk management. It provides Senior Management with an understanding of the size and magnitude of their risk exposures to prioritize resources on the most significant operational risks.

Practices have varied and have included scenario based approaches; stress testing; and factor based modelling. With the emergence of artificial intelligence technology and big data, firms are increasingly exploring different ways to tap into unstructured data to provide greater insight into the key risk drivers and better manage their operational risk.

In this session, we explore current and upcoming practices in risk quantifications, the challenges associated with these approaches and quantification approaches for specific risk types such as conduct and reputational risk.

Key takeaways:

• Current and upcoming practices in Operational Risk quantification
• Applying dimensional analysis to assessing Operational Risk Loss Data
• Quantification approaches – application to risk types and limitations

Please see here for the agenda.