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Adjusting expected loss figures for macroeconomic conditions can be a useful tool for spotting control failures – including fraud – early, delegates at the OpRisk North America conference in New York heard today.

Gus Felix, the global head of operational risk at Citigroup, pointed out that correcting expected loss figures produced by models under the advanced measurement approach (AMA) for economic data would allow the residual variation between observed and expected losses to be used as an indi

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