Abstract
To meet the Basel II regulatory requirements for the Advanced Measurement Approaches, a bank’s internal model must include the use of internal data, relevant external data, scenario analysis and factors reflecting the business environment and internal control systems. Bayesian inference is a statistical technique well suited for combining different data sources. This chapter presents examples of the Bayesian inference and closely related credibility theory methods for quantifying operational risk.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
