August 6, 2007

Overcoming Biases in Operational Risk Scenario Analysis

By David Shu, Protiviti Senior Manager

As traditional forecasting and planning no longer fully serve business needs, many financial organizations are using scenario analysis to evaluate the impact and likelihood of extreme but plausible risk events. In this article, David Shu explains how, if successfully executed, scenario analysis can be the most valuable element in an organization’s operational risk management framework.