Operational Risk: Measurement
Interactive

Operational Risk: Measurement

Intuition Publishing
Updated Aug 26, 2020

Operational risk has historically been difficult to quantify, though recent initiatives have greatly enhanced the potential for its measurement. Under the Basel II framework, banks can use a number of different approaches to allocate capital against OpRisk. Here we outline these approaches and look at other technqiues used by the banks themselves to quantify the risk.