ENBIS: European Network for Business and Industrial Statistics

Integrating Operational and Financial Risk Assessments

21 September 2009, 15:45 – 16:05

Abstract

Submitted by

SILVIA FIGINI

Authors

Silvia Figini Ron Kenett Juan Tomas Sayago Paolo Giudici

Abstract

Operational risks are typically classified into hardware, software, interface, network and security related events. Assessing operational risks involves merging data from different sources such as system logs, call centre records, technical service data bases and customer complaints. Financial risks are reflected by balance sheets, performance trends and expert opinions. In this paper we will present a new approach to integrate the two domains and provide a combined assessment. Such an assessment considers specific companies and their segment. We will present our approach in the context of a company serving customers with installed Private Branch Exchanges providing telecommunication capabilities, including Voice over IP. Each customer is assessed in terms of it's operational risks, in a specific way and in terms of the segment it belongs. A similar assessment is conducted with respect to its financial risks. The models we propose include a customer specific and a segment specific contribution. Such models allow decision makers determine the proper business models for serving their customers.

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