Using Bayesian networks to model the operational risk to information technology infrastructure in financial institutions
This paper describes the use of Bayesian networks (BNs) to model the operational risk to information technology (IT) infrastructure in financial and other institutions. We describe a methodology for modeling financial losses that might result from operational risk scenarios involving data centers and operational locations, applications and systems, processes, and ultimately IT supported customer-facing services. We focus on modeling the causes and effects of unexpected loss events using a Bayesian network model of the IT infrastructure combined with assessments of the severity of impact of these events in terms of the Value at Risk (VaR) for the organization. We use a state-of-the-art Bayesian network tool to simulate an example analysis of the model. The work also illustrates how ideas commonly used to measure risk in other industries, especially the Aviation and Nuclear sectors, readily translate to operational risk in finance.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 22 (2008)
Issue (Month): ()
|Contact details of provider:|| Postal: |
Phone: +1 212 284 8600
Web page: http://www.capco.com/Email:
When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:0929. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Springett)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.