Financial institutions have always been exposed to operational risk – the risk of loss, resulting from inadequate or failed internal processes and information systems, from misconduct by people or from unforeseen external events. Both banking supervision authorities and banking...

Improving organization means on the one hand searching for adequate product (service) matched to the market, on the other hand shaping the ability to react on risks caused by that activity. The second should consist of identifying and estimating types of risk, and consequently creating solutions...

This paper is a commentary on current and emerging statistical practices for analysing operational risk losses according to the Advanced Measurement Approaches of Basel II, the New Basel Accord. In particular, the limitations of the ability to model operational risk loss data to obtain high...

Studies on the management of operational risk in financial organizations have predominantly utilized quantitative and probabilistic approaches. Such approaches provide managers with a way to estimate the probability of operational failure occurring but do not provide insights with regard to...

The Basel Committee on Banking Supervision has released, in the last few years, recommendations for the correct determination of the risks to which a banking organization is subject. This concerns, in particular, operational risks, which are all those management events that may determine...