Tackling the insufficiency of loss data for op risk quantification

A key requirement for assessing operational risk -- a solid loss database -- has not yet been developed across the banking industry. Marcus Haas and Thomas Kaiser explore the reasons for and the implications of the lack of high-quality data

With the introduction

of the new Basel Capital Accord, banks will -- for the first time -- be forced to explicitly hold capital against operational risk. Even though op risks exist even before trades are made or credits are granted, they are a fairly new