David Babbel and Kabir Dutta show that while scenario analysis is an important tool for risk measurement, its use in the measurement of operational risk capital has been quite arbitrary and often inaccurate. They propose a method for the measurement of operational risk exposure of an institution using scenario analysis and internal loss data but based on the Change of Measure approach used for asset pricing in financial economics.
Sampling as a strategic tool in litigation and investigations: Precision and power for complex matters
Sampling can transform overwhelming data volumes into clear, defensible insights—supporting legal strategy while managing costs and compressing time. Whether...