10. Operational Risk Management beyond AMA: New Ways to Quantify Non-Recorded Losses

  1. Ron S. Kenett PhD, BSc Chairman CEO Research Professor Professor Associate Director Editor in Chief President3,4 and
  2. Yossi Raanan PhD, BSc Senior Consultant Strategic Partner Senior Lecturer former dean head chairman director5,6
  1. Giorgio Aprile head,
  2. Antonio Pippi PhD telecommunications engineer1 and
  3. Stefano Visinoni electronic engineer Senior Consultant Risk Manager2

Published Online: 19 AUG 2010

DOI: 10.1002/9780470972571.ch10

Operational Risk Management

Operational Risk Management

How to Cite

Aprile, G., Pippi, A. and Visinoni, S. (2010) Operational Risk Management beyond AMA: New Ways to Quantify Non-Recorded Losses, in Operational Risk Management (eds R. S. Kenett and Y. Raanan), John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9780470972571.ch10

Editor Information

  1. 3

    KPA Ltd, Raanana, Israel; University of Turin, Italy

  2. 4

    NYU-Poly, Center for Risk Engineering, New York, USA

  3. 5

    KPA Ltd, Raanana, Israel

  4. 6

    College of Management, Academic Studies, Rishon Lezion, Israel

Author Information

  1. 1

    Department of Information Engineering at the University of Siena, Italy

  2. 2

    Department of Economic Science at the University of Verona, Italy

Publication History

  1. Published Online: 19 AUG 2010
  2. Published Print: 22 OCT 2010

ISBN Information

Print ISBN: 9780470747483

Online ISBN: 9780470972571

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Keywords:

  • advanced measurement approach (AMA);
  • Monte dei Paschi di Siena (MPS);
  • near miss/opportunity loss;
  • non-recorded losses;
  • operational risks;
  • risk-mitigating strategy

Summary

This chapter is based on a project conducted in one of the main banks in Italy, Monte dei Paschi di Siena (MPS). The chapter defines the kind of events dealt with, by giving examples of non-measured losses in a banking context. The methodology is illustrated, which provides a ‘near miss/opportunity loss’ application for managing ‘hidden’ and non-measured impacts of operational risks. Further details are provided in the case study, which explains how the ‘near miss/opportunity loss’ service is applied to MPS’s databases. Finally, the chapter summarizes the advantages provided by the methodology, in particular by selecting the best risk-mitigating strategy, and discusses the general scope of its applicability.

Controlled Vocabulary Terms

statistical measures