Jianming Mo is a Professor in Finance at the Institute of Chinese Finance Studies, Southwestern University of Finance and Economics, Chengdu, China. His research interest lies in fields including applied economics, financial engineering and financial risks. He has published several books and more than twenty papers with respect to the topic about operational risk measurement and management. Dr. Mo obtained his PhD degree at 2009 from the University of Electronic Science and Technology of China, with a focus on management science and engineering. He also serves a council member for the Chinese Academy of Risk Analysis and Management.
This paper provides a rationale for adopting quantitative buffer capital, designed to absorb variations due to measurement errors, especially those originating from the estimation risk.