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Operational Risk: Where is the Value?
This paper attempts to answer a series of practical questions that typically confront CROs in small institutional settings, including:
- How do I quantify the benefits of making an investment (say a technology investment) to reduce the current amount of capital assigned to operational risk?
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How do I provide greater internal and external transparency around the cost of capital attributed to operational risk?
- How do I explain these benefits to the management committee or to a board of directors in order to obtain funding for that investment?
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