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.
Securities Litigation Flash: Q3 2025
Filing trends Section 10(b) and Section 11 filings totaled 49 during the third quarter of 2025, 16% fewer than in the same period in 2024 and 2% more than in...