Operational Risk Modelling for a Complex World
Frequency and severity operational risk models are not always fit for purpose in the complex environments we now operate in. Consider cyber risk; where the future evolution of the risk is unknown and data from past events, if public, are not a good indicator of future potential events.
Causal modelling provides a means for modelling these risks in a narrative approach that helps to make sense of the complexity.
This presentation will demonstrate the use of causal modelling and how it is able to overcome some of the shortcomings from traditional capital modelling techniques, using cyber risk as an example.
Find the Q&A here: Q&A on 'Operational Risk'