March 21, 2023
Acin named Best Operational Risk Management Partner by CFI
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.