Identifying, modeling, and exploiting relationships between Operational Risk losses and the state of the economy: An empirical investigation in the U.S. economy

The losses realized by firms due to the occurrence of an Operational Risk (Op Risk) event, defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, constitute a threat for the firms’ performance. More specifically, the average ratio of the Op Risk losses-to-revenues equals 13...