Measuring and Analyzing Operational Risk

A key issue in operational risk management is the difficulty associated with pinning down a likelihood and a severity, as well as using information from external events in a meaningful way. Because of that, the measurement of volatility in operational risk is the primary puzzle risk specialists seek to solve. However, they have developed a few good techniques you can use to put your operational risks into perspective.
Risk Factors
The measurement of operational risk is a relatively new concept. Risk management experts have only been seeking measurement methods in earnest since the mid-1990s, thanks in part to regulatory authorities in certain industries placing more attention on the concept.

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