Measuring and managing market, credit and Op risk [71]

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Bullet points include: Most (all?) firms have insufficient own data to be able to identify likelihood of every different type of risk Hence, value of other firms’ experience, if relevant and accessible May be industry-wide, e.g. regulator driven or privately funded But important to note that firms’ operational risk exposures have significant idiosyncratic elements E.g. Culture, decision-making processes, reputational risks etc. Usually split between frequency and severity Again because believed to encode additional information

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