Algo teams up with Agena to solve op risk data history issue

Canadian risk management technology supplier Algorithmics has teamed up with UK software company Agena to help institutions to model operational risk better.

Agena's proprietary iRisk scorecard software uses Bayesian probabilistic modelling techniques to interpret assessment questionnaire results to predict future losses where there is little historical loss data available. The lack of an operational loss data history has proved a major concern to both bankers and regulators with regard to modelling operational risk. The Basel II capital Accord, due for implementation by 2007, will require financial institutions to assign regulatory capital to