
44 Operational Risk Control
bank cannot be used in one of its small subsidiaries – while, at the same time, the basic
and standard approaches are not an option for large banks.
Another, closely related, problem connected to operational risk tracking and
control is that of databases (see also Chapters 5 and 8). Today several banks are
actively working to solve the database bottleneck – whether through a consortium or
by themselves. Many develop an operational risk data collection and analysis
methodology targeting the loss distribution approach – in appreciation of the fact the
latter absorbs op risk data like a sponge.
A good example of solving this ...