Regional banks favour scenario analysis over op risk modelling
Domestic and smaller regional players favour scenarios to gauge tail exposure; G-Sibs stick to modelling, for now
Regional banks show near-universal adoption of scenario analysis to gauge their exposure to operational risks, with an average deployment rate of 92% across their top five op concerns, including cyber risk.
They also boast the highest library refresh rates – more than their larger super-regional peers or global systemically important banks (G-Sibs), across the same risks – with precisely three
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