Theoretical and Empirical Studies of Operational Risk

Abstract

The academic and professional literature on operational risk has been mushrooming as a result of growing interest in what was once an unrecognised (at least explicitly) kind of risk and because of the advent of Basel II and its compliance requirements. In this chapter, a brief and selected survey of a subset of the literature is presented, the subset that deals with the main theme of this book: modelling and quantifying operational risk. This is probably the area of research (in finance and related fields) that gets most contributions from professionals to academic journals, because the topic is of practical significance. Indicative of the tendency of practitioners to contribute significantly to this research is that the editor of the Journal of Operational Risk and seven out of thirteen associate editors are practitioners.