In this last lesson, we deal with Operational Risk, a very important risk for banks. Unfortunately, its treatment in the Basel framework is not at all satisfactory. We will see why.
Topics:
- Definition of Operational Risk
- Characteristics of Operational Risk
- Basic Indicator Approach
- Standardized Approach.
If you are interested in more advanced approaches, I am glad to suggest one of my papers (joint with Prof. N.N. Taleb). More references can be found in our bibliography there: [ Ссылка ]
