Abstract
In this Chapter an evaluation of the possibilistic quantification of operational risk is performed. The assessment is achieved through fuzzy analytic hierarchy process (FAHP) and fuzzy extension of the technique for order preference by similarity to ideal solution (FTOPSIS) alongwith life cycle assessment (LCA) study. The fuzzy versions of analytic hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS) take care of the inherent uncertainty and vagueness in the operational risk data. The trapezoidal fuzzy numbers are used to model the fuzzy variables. The evaluation process of the possibilistic quantification of operational risk thus becomes more dynamic through integration of different fuzzy approaches.
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Chaudhuri, A., Ghosh, S.K. (2016). Evaluation of the Possibilistic Quantification of 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_9
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DOI: https://doi.org/10.1007/978-3-319-26039-6_9
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