Skip to main content
Bumped by Community user
edited title
Link
Quantuple
  • 14.8k
  • 1
  • 33
  • 70

How to estimate the probability of a scenario in gneralgeneral

Source Link

How to estimate the probability of a scenario in gneral

For my finance lecture we are currently on the topic of operation risk.

Scenarios play a vital role in the estimation of low frequency (or probability), high impact (or severity) events. How could you estimate the probability of a scenario?

This question is 2 marks, but would a step in the right direction be finding an appropriate distribution for frequency and severity of events.