
150 Operational Risk Control
7.4 The effort to develop advanced measurement approaches
With the exception of cause and effect relating to well-known operational risks, in
cases already established beyond doubt, analytical studies are not only the better way
to operational risk control, they are the only way. This section explains how and why
analytical approaches help to uncover the reasons for and behavior of operational
risks that can hit a company at any time with largely unexpected consequences, and
it concludes with one of the advanced methods by Basel II.
In Basel Committee terms the more advanced studies associated with operation risk
control ...