Diversification benefit of operational risk

Torresetti and Le Pera explore the relevance of the diversification benefit from a theoretical and practical viewpoint

Big losses see Amazons shares hit 12-month low

The regulator definition of operational risk is the loss expected over the next 12 months deriving from losses resulting from inadequate or failed internal processes, people and systems or from external events (excluding reputational and strategic risk).


Where market or credit risk can be thought of as a function of the bank's portfolio, operational risk can be thought of as a function of the bank's processes and governance. As such, it is difficult to compare the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: