Top 10 op risks 2015: model risk

Avoiding model failure will be a key issue in 2015

One of the biggest concerns for operational risk managers in 2015 will be internal – dealing with growing worries, within banks and at regulators, about the validity of their capital models, especially those used for calculating operational risk capital.

There are serious problems involved in deriving a credible capital number from a loss data set dominated by a few very recent, very large regulatory fines – one of the chief consequences of the long-running scandals now being discovered by