
High frequency events, low frequency events and the Six Sigma method 177
this example on option pricing, but also strategic alliances and mergers increase
operational risk. They do so because they make information less controllable as:
䊏 They compound layers of bureaucracy, and
䊏 Blur the company’s responsibility lines.
In conclusion, solutions to be provided to the problem of measuring and controlling
operational risk must be pragmatic. Their study should benefit from the best available
tools. Financial institutions should maximize their operational risk activity by
enabling interactive consultation between headquarters and operating units. This
enables ...