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Observations on the differences between operational risk regulatory and economic capital

In this article, Niklas Hageback takes a practical look at the difficulties in reconciling regulatory and economic capital calculation in the discipline of operational risk

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The preparation to comply with the new Basel capital accord and the introduction of advanced measurement approach (AMA)methodologies is causing many financial institutions to ask whether there exist any synergies with establishing an operational risk measurement methodology for economic capital? Can the same measurement methodology be used for regulatory capital modelling as well as for economic

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