Towards a practical capital model

REGULATORS and senior management are placing increasing emphasis on the need to calculate and allocate capital for operational risk. Among the internal measurement and allocation systems the industry has defined, three methodologies are being used and are evolving throughout the world:

• Loss distribution. This is where the capital charge is based on a (high) percentile of the probability distribution of operational losses from both internal and external sources.

• Scenario approach. Here, high

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Next-generation technologies and the future of trading

At a Risk.net webinar in association with capital markets technology provider Numerix, panellists discuss the potential for increased adoption of the public cloud to boost investment performance, its impact on risk management and overcoming barriers to…

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