Tricky situations
Op risk's reliance on scenario analysis was once a weakness. Now, experts say it is a strength
Subjectivity is the product of diversity. Michael Grimwade, Lloyds TSB's operational risk director for wholesale and international banking division, pointed out the sheer breadth of risks spanned by the op risk umbrella in his address at OpRisk Europe 2008.
But it is also this complexity of variables - some computable and some non-computable - that makes operational risk the black sheep of the risk community. As the European Investment Bank's head of the operational risk section, Sergio Scandizzo
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