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Quantitative Modeling of Operational Risk in Finance and Banking Using Possibility Theory pp 75–112Cite as

Possibility Theory for Operational Risk

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Part of the book series: Studies in Fuzziness and Soft Computing ((STUDFUZZ,volume 331))

Abstract

In this chapter the fundamental mathematical foundations of possibility theory are presented. The operational risk is quantified using the possibility theory in Chap. 6. The possibilistic quantification of operational risk takes care of the inherent impreciseness and vagueness present in the banking and financial data. The concepts of σ-Algebra, measurable space and measurable set, measurable function, uncertainty measure, uncertainty space, uncertainty distribution and uncertainty set are explained with several illustrative examples. The chapter concludes with an analysis of possibilistic risk.

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Author information

Authors and Affiliations

  1. Samsung R&D Institute Delhi, Noida, Uttar Pradesh, India

    Arindam Chaudhuri

  2. School of Information Technology, Indian Institute of Technology, Takshashila Building, Kharagpur, India

    Soumya K. Ghosh

Authors
  1. Arindam Chaudhuri
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  2. Soumya K. Ghosh
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Corresponding author

Correspondence to Arindam Chaudhuri .

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Chaudhuri, A., Ghosh, S.K. (2016). Possibility Theory for Operational Risk. In: Quantitative Modeling of Operational Risk in Finance and Banking Using Possibility Theory. Studies in Fuzziness and Soft Computing, vol 331. Springer, Cham. https://doi.org/10.1007/978-3-319-26039-6_5

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  • DOI: https://doi.org/10.1007/978-3-319-26039-6_5

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-26037-2

  • Online ISBN: 978-3-319-26039-6

  • eBook Packages: EngineeringEngineering (R0)

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