Operational risk

Operational VAR: a closed-form approximation

Klaus Böcker and Claudia Klüppelberg investigate a simple loss distribution model for operational risk. They show that, when loss data is heavy-tailed (which in practice it is), a simple closed-form approximation for operational VAR can be obtained. They…

The stagnancy of risk transfer

It's fairly clear from our feature on alternative forms of risk transfer for op risk that not much has happened in this space over the past two years, despite a lot of fine words from both the insurance industry and its clients.

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