Interesting piece in Ops Risk & Regulation on scaling of data in loss analysis. Intro:

“An issue for op risk managers is scaling modelling data to a relevant size without sacrificing its value through over-manipulation. Using a query model to determine which data to use makes the process easier and reduces the risk of cherry-picking favourable data points”


Full article here:


Posted by Carlos Alvarenga

Carlos A. Alvarenga is an Adjunct Professor in the Logistics, Business and Public Policy Department at the University of Maryland’s Robert E. Smith School of Business.

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