Op risk managers can expose yesterday’s loss and today’s weakness, but they cannot quantify the risk of tomorrow, says Benedict Roth of Rabobank International.
Operational risk is clearly going to be one of this year’s hot topics in banking. But can it really be measured and quantified in the same way as market and credit risk?
Practitioners make the point that historical data on operational risk events are scarce compared to historical data on market and credit risk events. This is true.
The week on Risk.net, December 2–8, 2017Receive this by email