Evaluating potential future events to predict possible results and outcomes. US regulators define operational risk scenario analysis as a systematic process of obtaining expert opinions from business managers and risk management experts to derive reasoned assessments of the likelihood and loss impact of plausible high-severity operational losses. Scenario analysis can identify quantitative and qualitative impacts, as well as financial and non-financial ones. Within the Basel Committee operational risk framework, risk scenarios are meant to be forward looking – hypothetical plausible constructs, not forecasts or predictions. They are also meant to compliment internal and external data.

Popular resources

You may be interested in

News
2 mins reading time

Acin wins Risk.net’s OpRisk Innovation of the Year, for second year in a row

News
2 mins reading time

FinTech Global Recognizes Acin as Top AIFinTech100

Stephane Besson
News
3 mins reading time

Acin adds senior advisor to industry-leading team, as data network continues to expand

Discover more