Domain 04 · Operational Risk
Loss data, RCSA, KRI.
Operational capital,
precisely measured.
44 functions spanning the complete operational risk management framework — from loss data collection and distribution fitting through RCSA, KRI monitoring and scenario analysis to AMA capital modelling. Covers Basel SMA and internal model approaches.
44
Functions
6
Categories
Basel SMA
Standard
AMA
Compliant
Function library
44 Operational Risk functions
Showing all 44 functions
Key capabilities
Built for institutional precision
Loss Distribution Approach (LDA)
Fits severity and frequency distributions to internal loss data. Aggregates via FFT or Monte Carlo to produce the compound loss distribution and tail capital estimate at 99.9%.
RCSA Framework
Structured risk and control self-assessment capturing inherent risk, control effectiveness and residual risk scores across business lines and risk categories.
Scenario Analysis
Expert-elicitation model for scenario severity and frequency estimation. Generates plausible tail scenarios for events not well-represented in internal loss history.
Regulatory alignment
Standards covered
✓
Basel III — Standardised Measurement Approach
SMA OpRisk capital replacing AMA. Business Indicator Component and Internal Loss Multiplier computation.
✓
Basel II AMA — Internal Model
Advanced Measurement Approach using LDA, scenario analysis and BEICF adjustments.
✓
EBA SREP OpRisk Assessment
Supervisory review of OpRisk governance, loss data quality and capital adequacy under Pillar 2.
✓
PRA SS2/21 — Model Risk Management
Model risk identification, tiering, validation and governance aligned with PRA expectations.
API example
Operational Risk endpoint
POST /api/v1/oprisk/var
{
"loss_data": [...],
"severity_dist": "lognormal",
"frequency_dist": "poisson",
"confidence_level": 0.999
}
→ oprisk_var_999: £24,800,000
→ expected_loss: £2,100,000
→ economic_capital: £22,700,000
{
"loss_data": [...],
"severity_dist": "lognormal",
"frequency_dist": "poisson",
"confidence_level": 0.999
}
→ oprisk_var_999: £24,800,000
→ expected_loss: £2,100,000
→ economic_capital: £22,700,000
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