Tags » Operational Risk

Stepping off the curb: A better governance structure and effective operating models for regulatory reporting

Regulatory reporting operating model – A new paradigm

Heightened regulatory expectations for regulatory reporting requires institutions to focus on preparing high-quality reports. One key element of this focus should be a governance structure that enforces accountability, measures data quality, mitigates reporting and operational risks, and allocates resources to address data and financial reporting challenges. 1,446 more words

Financial Services

Modeling Dollar Amounts in Regression Setting

After switching the role from the credit risk to the operational risk in 2015, I spent countless weekend hours in the Starbucks researching on how to model operational losses in the regression setting in light of the heightened scrutiny. 557 more words

Statistical Models

Estimating Parameters of A Hyper-Poisson Distribution in SAS

Similar to COM-Poisson, Double-Poisson, and Generalized Poisson distributions discussed in my previous post (https://statcompute.wordpress.com/2016/11/27/more-about-flexible-frequency-models/), the Hyper-Poisson distribution is another extension of the standard Poisson and is able to accommodate both under-dispersion and over-dispersion that are common in real-world problems. 247 more words

Statistical Models

Adverse Consequences of Money Laundering: The Risk Tetralogy

The adverse consequences of money laundering are generally described as reputational, operational, legal and concentration risks. They are interrelated, and each has financial consequences.

Money Laundering

Keeping skills current: Online learning with SS&C Learning Institute

By Adam Hall

As the world’s financial markets grow increasingly sophisticated, it can be difficult to stay current with the latest trends and developments. Today’s financial professionals are expected to possess a broad understanding of an ever-widening array of products and services. 297 more words


Model Non-Negative Numeric Outcomes with Zeros

As mentioned in the previous post (https://statcompute.wordpress.com/2017/06/29/model-operational-loss-directly-with-tweedie-glm/), we often need to model non-negative numeric outcomes with zeros in the operational loss model development. Tweedie GLM provides a convenient interface to model non-negative losses directly by assuming that aggregated losses are the Poisson sum of Gamma outcomes, which however might not be well supported empirically from the data generation standpoint. 769 more words

Statistical Models

Evolution of Banking - 2

Labor as a commodity

The introduction of money resulted in increase in commercial activities, this was primarily driven by the origination of the demand and supply mechanism.   511 more words

Operational Risk