Abstract
Until very recently, it has been believed that banks are exposed to two main types of risks: credit risk (the counterparty failure risk) and market risk (the risk of loss due to changes in market indicators, such as interest rates and exchange rates), in the order of importance. The remaining financial risks have been put in the category of other risks, operational risk being one of them. Recent developments in the financial industry have shown that the importance of operational risk has been largely under-estimated. Newly defined capital requirements set by the Basel Committee for Banking Supervision in 2004, require financial institutions to estimate the capital charge to cover their operational losses [6].
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© 2006 Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden
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Rachev, S.T., Chernobai, A., Menn, C. (2006). Empirical Examination of Operational Loss Distributions. In: Morlock, M., Schwindt, C., Trautmann, N., Zimmermann, J. (eds) Perspectives on Operations Research. DUV. https://doi.org/10.1007/978-3-8350-9064-4_21
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DOI: https://doi.org/10.1007/978-3-8350-9064-4_21
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