OpRisk North America: Too much confidence in risk models, OCC’s Levonian warns

OCC's Mark Levonian

Operational risk managers are relying too heavily on risk models and might not be adequately scrutinising the stress testing, scenario analysis and loss data underpinning crucial risk assumptions, a senior US regulator has warned.

In his keynote speech at the OpRisk North America conference in New York yesterday, Mark Levonian, senior deputy comptroller for economics at the Office of the Comptroller of the Currency, cautioned operational risk managers against relying too much on risk models.