Financial institutions are in the business of risk management and reallocation, and they have developed sophisticated risk management systems to carry out these tasks. The basic components of a risk ...

The U.S. bank supervisory agencies recently issued for public comment revised guidance regarding the implementation of the proposed Basel II-related, risk-based capital requirements. Among the ...

Operational disruptions can have serious repercussions for firms over extended periods of time. In this work, we develop a multi-period model of operational risk. We define the loss process of ...

The push for standardization under Basel III continues, bringing significant changes to how banks calculate capital requirements for operational risk. Against this backdrop, the European Banking ...

Installing a powerful risk-management software system is a bit like owning a horse. A horse may seem like a wonderful idea to a child, but if you try to keep one in the garage, and have to keep ...