Banks move to model smaller op risk losses
Credit Suisse is using scenario analysis to model the risks associated with internal fraud losses
Banks are increasingly seeking to analyse smaller operational loss events to see if they may be predictive of bigger problems bubbling under the surface.
“I’m starting to think about how we can use certain data mining or artificial intelligence techniques to see some of those trends in the data of the smaller losses, [so we can] identify any degradation that might be happening in the control environment,” said Mike Rachlin, director of corporate operational risk at BNY Mellon.
Op risk managers
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