Consortiums look beyond historical loss data
The financial crisis has shown historical loss data is not enough to help model and predict future op risk events, so some loss data consortiums are looking to include features such as scenario analysis results in their databases
Historical loss data is a prerequisite for any good operational risk management framework, but cannot predict the future. Having more and better historical loss data would not have helped firms predict the financial crisis. However, some suggest more detailed data might have helped banks be better prepared for the downturn.
“The financial crisis has been a salutary experience for risk managers
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