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What does an Operational Risk Scenario Model do?

  • Writer: Mustafa Cavus
    Mustafa Cavus
  • Aug 20, 2023
  • 1 min read

What does an operational risk scenario model do? In a nutshell, an operational risk model takes inputs and produces capital requirements as outputs. What are the inputs? For each risk scenario, the inputs are an 'extreme but plausible' loss, given the occurrence of a scenario and the likelihood of occurrence.


 
 
 

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