Harvesting loss data

Although often the core of Basel II models, loss event data is usually less robust than op risk executives would like. Peter Madigan explores the challenges around collection, clearing and enrichment

Although a low frequency/high severity loss is the kind of event that keeps risk managers awake at night, it is the more mundane and frequent losses that happen dozens of times a year that keep them on their toes. So it is hardly surprising that most firms have focused their efforts to improve internal risk management on high frequency/low severity events, and on harvesting as much of this data as