Operational Risk Working Party report

Document description

The second section of this paper considers the definition of Operational Risk, presenting a possible framework for analysing all risks and discussing a number of publicly available definitions.

The third section gives a brief "check list" of identified methodologies that might be brought to bear in modelling Operational Risk and discusses the modelling challenge.

The fourth section discusses (or, rather, gives a rallying call for) the role of the actuary in addressing Operational Risk.

The fifth section gives some concluding remarks and makes recommendations on what further work the profession might do in this field, and the final section gives a bibliography of references and web links that we identified in our work.