Consortiums look beyond historical loss data

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Historical loss data is a prerequisite for any good operational risk management framework, but cannot predict the future. Having more and better historical loss data would not have helped firms predict the financial crisis. However, some suggest more detailed data might have helped banks be better prepared for the downturn. “The financial crisis has been a salutary experience for risk managers, with the credibility of risk models and scenarios seemingly undermined because of their inabi