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title:
 
Evaluating Operational Risk Exposure Using Fuzzy umber Approach to Scenario Analysis
publication:
 
EUSFLAT
part of series:
  Advances in Intelligent Systems Research
pages:   1045 - 1051
DOI:
  To be assigned soon (how to use a DOI)
author(s):
 
Antonina Durfee, Alexey Tselykh
publication date:
 
July 2011
keywords:
 
operational risk, scenario analysis, fuzzy decision making, fuzzy number
abstract:
 
Risks and losses arising from system failure, unauthorized activity, fraud and other operational errors are postulated to be one of the primary banking risks. Expert-based scenario analysis aims at describing the frequency and severity of extreme operational losses. Experts are not exact in predicting quantitative estimates for a distant future. The predicted scenarios are described by range estimates and qualitative storylines. This study introduces and applies the methodology for evaluation of the operational risk levels derived from the experts opinions collected from scenarios. The methodology is based on the use of fuzzy numbers to express subjective probability of expert estimates.
copyright:
 
© Atlantis Press. This article is distributed under the terms of the Creative Commons Attribution License, which permits non-commercial use, distribution and reproduction in any medium, provided the original work is properly cited.
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