
Market discipline, contrary opinion and scoreboard solutions 195
events by inserting a background probability of risks occurring even when controls
are effective. Equally important is to simulate control failures, including:
䊏 Those failing only once in a while
䊏 Those staying failed after fixing, and
䊏 Those slowly degrading over time.
In conclusion, what we would like to achieve with an advanced scoreboard solution
is a system of traffic lights – green, amber, red – which can serve in channelling the
attention of operational risk controllers. As Chapter 8 has shown, statistical quality
control (SQC) charts can serve as effective tracking tools. An ...