Bank of Italy official posts op risk paper

In mid-July, an official from the Bank of Italy posted a paper, The modelling of operational risk: experience with the analysis of the data collected by the Basel Committee, which is beginning to garner attention in international op risk circles.

Marco Moscadelli, an officer in the banking supervision department, says: “The purpose of this paper is to increase the level of understanding of op risk within the financial system, by exploring the statistical behaviour of the abundant data collected by the Basel Committee – more than 47,000 observations from 89 internationally active banks – and going on to derive bottom-up capital charge figures and gross income-related coefficients for the business lines envisaged in the revised

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