Mizgier, Kamil J.; Hora, Manpreet; Wagner, Stephan M.; … - In: European Journal of Operational Research 245 (2015) 1, pp. 320-332
Firms maintain a capital charge to manage the risk of low-frequency, high-impact operational disruptions. The loss distribution approach (LDA) measures the capital charge using two inputs: the frequency and severity of operational disruptions. In this study, we investigate whether or not capital...