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.
Are big ransom payments a smart response to the global menace of ransomware?
Many companies find it helpful to assess the associated risks through multiple lenses, including: “Business Risk” lens Reputation: payments can strengthen the...