Toward a Prime Metric: Operational Risk Measurement and Activity-Based Costing
Operational Risk, The Risk Management Association, pages 34-40.
8 Pages Posted: 4 Feb 2021
Date Written: November 1, 2004
Abstract
In their quest to assign capital appropriately, banks need the ability to compare two products in a way that objectively ascertains which is operationally riskier and by how much. Perceptions of changes in these risks can be used to predict future risk. Enter the prime metric to save the day...(if only it were that easy).
Keywords: Risk, Operational Risk Measurement, Activity-Based Coasting
JEL Classification: G32
Suggested Citation: Suggested Citation
Mainelli, Michael, Toward a Prime Metric: Operational Risk Measurement and Activity-Based Costing (November 1, 2004). Operational Risk, The Risk Management Association, pages 34-40., Available at SSRN: https://ssrn.com/abstract=3717741
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