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Approach to add scenarios to OpRisk loss distribution

The problem is not the sum $L + L_1$ but the question whether your $L_1$ is really a good model for whatever you might be missing in $L$. I personally (and maybe also some regulators) would regard ...
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Approach to add scenarios to OpRisk loss distribution

Taken from my experience as a trader I would suggest there are two parameters that comprise OperationalRisk: 1) A distribution of the size of losses due to the event, 2) A distribution of the ...
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Modelling operational risk for Basel pillar 2 (internal model for OpRisk VaR)

Not a complete answer put perhaps partial help. What alternatives do we have for pillar 2? Hard to say. There doesn't seem to be any specific alternatives, apart adjusting your old procedures to ...
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