Operational Risk

Analyze and manage operational risk

Operational risk is the potential for a loss arising from people, processes, systems, or external events that influence a business function. In recent years a hot topic in financial services has been the development of operational risk recommendations and regulations for banking. The Basel Committee on Banking Supervision (BCBS) created the Basel Accords to provide definitions of formal techniques for the quantification of operational risk, credit risk, liquidity risk and market risk.

Leading financial institutions use MATLAB to build models and manage operational risks to achieve Basel II/III compliance. With Statistics Toolbox, you can build customized models, perform Monte Carlo simulations, and analyze a variety of scenarios to assess risk exposure arising from financial activities exposed to operation risks.

Examples and How To

• Energy Trading and Risk Management (Webinar)
• Nykredit Develops Financial Applications to Minimize Operational Risk (User Story)
• A2A Develops Comprehensive Financial Risk Management Solution (User Story)
• Horizon Wind Energy Develops Risk Management Tools for Wind Farms (User Story)
• Capgemini Helps Clients Achieve Basel II Compliance with MATLAB (User Story)
• Basel II Compliance and Financial Risk Management Analysis (Article)
• Developing Scenario Analysis Models for Operational Risk at Intesa Sanpaolo (Article)

See also: risk management, Monte Carlo simulation, energy trading and risk management