US white paper stresses op risk challenges

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NEW YORK – Operational risk has long been seen as the poor cousin of credit and market risk, but this neglect is coming to an end as regulators seek to understand the difficulties and weaknesses of risk calculations.

Early this year, the US Office of the Comptroller of the Currency (OCC) and the North Carolina-based National Institute of Statistical Sciences convened a group of supervisors, financial engineers, statisticians and economists to discuss practical challenges faced in quantitative ri