Tags » Operational Risk

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

Financial institutions choose private hosting

By Marcus Jones

It’s likely that your firm has already moved operational infrastructure to either a private hosting environment or a public cloud service provider. Maybe discussions are still taking place, weighing the benefits of service migration. 385 more words


Evolution of Banking - 1

Safekeeping of Value

Gold, precious stones, spices and skill based artifacts were the predominant components of trade across geography.  The concept of money also caught on pretty fast and kingdoms decided on their choice of money for transacting within their geography.   341 more words

Operational Risk

Model Operational Losses with Copula Regression

In the previous post (https://statcompute.wordpress.com/2017/06/29/model-operational-loss-directly-with-tweedie-glm), it has been explained why we should consider modeling operational losses for non-material UoMs directly with Tweedie models. However, for material UoMs with significant losses, it is still beneficial to model the frequency and the severity separately. 748 more words

Statistical Models

Some history to consider

Operational Risk is a term which gained legitimacy with the introduction of BASEL II guidelines in 2003.  However, this does mark both a big positive for the recognition of the activity and a big negative for the ambiguity and sophistication that got associated with this activity.   402 more words

Operational Risk