Panel defends value of modelling at OpRisk Europe

Avoid temptation of over-complexity, risk experts say

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Andrew Sheen: "We need to understand the limits of accuracy of these models"

Speakers at the OpRisk Europe conference in London today (June 11) defended operational risk modelling as a vital link between business decisions and capital allocation, but acknowledged that models have a tendency to grow unnecessarily complex.

Jonathan Humphries, executive director at Aon Benfield, cited the chairman of the Basel Committee on Banking Supervision, Stefan Ingves, who said recently that risk managers should "be mindful of the inherent bias in favour of making things more complex"

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