Event horizon

Rick Cech takes a second look at what makes up operational risk event types, and asks if there is a more advanced way to define them

EVEN IN the fast-paced world of risk analytics, event types are a relatively new invention. The two-level data hierarchy we have all come to know – whether fondly or otherwise –as 'Basel II event types', originated with a special task force of the Working Group on Operational Risk (WGOR), formed by the International Institute of Finance. The task force's recommendations, released in May 2001, were promptly incorporated into the original Basel II framework, where they remain today, virtually