Building scenarios

Kenji Fujii of UFJ Holdings looks at the benefits of using scenario analysis as a means of managing operational risk, and discusses UFJ Bank's scenario-based advanced measurement approach

Over the past few years, more and more financial institutions have worked hard to develop operational risk management frameworks, particularly those methodologies based on value-at-risk (VAR). These institutions, however, are experiencing a number of challenges. This article examines some of these challenges and explains how the scenario-based advanced measurement approach (AMA) provides