Naim P., Condamin L. Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method

Wiley, 2019. — 320 p. — ISBN: 1119508509.Transform your approach to oprisk modeling with a proven, non-statistical methodologyOperational Risk Modeling in Financial Services provides risk professionals with a forward-looking approach to risk modeling, based on structured management judgement over obsolete statistical methods. Proven over a decade’s use in significant banks and financial services firms in Europe and the US, the Exposure, Occurrence, Impact (XOI) method of operational risk modeling played an instrumental role in reshaping their oprisk modeling approaches; in this book, the expert team that developed this methodology offers practical, in-depth guidance on XOI use and applications for a variety of major risks.The Basel Committee has dismissed statistical approaches to risk modeling, leaving regulators and practitioners searching for the next generation of oprisk quantification. The XOI method is ideally suited to fulfil this need, as a calculated, coordinated, consistent approach designed to bridge the gap between risk quantification and risk management. This book details the XOI framework and provides essential guidance for practitioners looking to change the oprisk modeling paradigm.Survey the range of current practices in operational risk analysis and modeling
Track recent regulatory trends including capital modeling, stress testing and more
Understand the XOI oprisk modeling method, and transition away from statistical approaches
Apply XOI to major operational risks, such as disasters, fraud, conduct, legal and cyber risk
The financial services industry is in dire need of a new standard — a proven, transformational approach to operational risk that eliminates or mitigates the common issues with traditional approaches. Operational Risk Modeling in Financial Services provides practical, real-world guidance toward a more reliable methodology, shifting the conversation toward the future with a new kind of oprisk modeling.