Operational Risk Capital Models (2nd edition)
Discipline: Operational Risk, Quantitative Analysis
Rafael Cavestany is back as the sole editor of this updated edition of Operational Risk Capital Models. Since the fallout of the great financial crisis (GFC), regulators have been developing new guidance for financial institutions which define plausible responses to severe-impact scenarios (such as the GFC) for operational disruptions to critical business processes. How timely, then, that this new edition should be written during a pandemic that has had far-reaching effects across the global economy and society.
Cavestany has reassembled a roster of operational risk experts to pervasively analyse, quantify and identify the potential economic and operative consequences of this type of impact scenario through a more granular and critical tool: operational risk capital modelling.
This book provides the experiences of its authors during the successful implementation in organisations of operational risk capital models, best practices and industry standards, and the integration of the capital results into day-to-day risk management. The authors use the challenges described in the chapters to define the required elements in the operational risk capital modelling framework.