Simulate scenarios for loss under operational risk scenario

Simulate scenarios for loss under operational risk scenario. Setting individual
variables in the model to specific values, scenarios are simulated for operations
and calculate loss is calculated under operational scenario to support decisionmaking
and perform stress testing.
Algorithmics Operational Risk provides a clear, effective system for managing
operational risk through measuring, and modeling the transaction processing at key
control points. Using advanced visualization and reporting techniques, it can deliver
the relevant information accurately and timely. The benefits of such an approach
means that a firm can:
Ω Reduce operational costs through more effective information delivery.
Ω Improve compliance checking capability.

Ω Improve market conformity verification capability.
Ω Reduce potential loss due to operational failure.
Ω Improve capability of detecting anomalies in operational processes.
Ω Measure value at operational risk for capital allocation.
Ω Measure potential loss under rare event scenarios.
Ω Measure potential loss under system failure scenarios.
Dr King’s causal modelling approach and solution to operational risk represents the
future for operational risk modeling and systems in all firms.