Operational Risk Control of Commercial Banks based on Bayesian Network

DOI

10.2991/icetis-13.2013.209How to use a DOI?

Keywords

Bayesian network; operational risk control; event tree

Abstract

Commercial banks are facing challenges in operational risk management, with the occurrence of major events of Bahrain bank and other events on the banks. Most studies have concentrated on how to measure operational risk loss based on the new Basel Capital Accord and focus on mathematic and statistical method to accurately calculate the capital charge. However, studies on how to control and reduce the affect of operational risk are relatively scarce. Therefore, it is feasible and sensible to deepen the study of root cause of operational risk and find effective control methods, which can provide meaningful result in the future. In this paper, the risk events are presented with event tree; then the event tree is transformed into the Bayesian network. Next, loss probability of each node is estimated according to the Bayesian network structure. Finally, the specific control scheme is put forward to achieve the desired control effect.

Copyright

© 2013, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaoling Hao
PY  - 2013/06
DA  - 2013/06
TI  - Operational Risk Control of Commercial Banks based on Bayesian Network
BT  - Proceedings of the 2013 the International Conference on Education Technology and Information System (ICETIS 2013)
PB  - Atlantis Press
SP  - 918
EP  - 923
SN  - 1951-6851
UR  - https://doi.org/10.2991/icetis-13.2013.209
DO  - 10.2991/icetis-13.2013.209
ID  - Hao2013/06
ER  -