Risk Measurement and Assessment for Operational Risk and Resilience - FRM Part 2 2025

Learn essential operational risk measurement and assessment concepts in this comprehensive FRM Part 2 lecture covering operational loss data collection, regulatory requirements, and risk assessment tools. Master best practices for operational loss incident reporting, understand risk control self-assessments (RCSAs), and explore the differences between key risk indicators (KRIs), performance indicators (KPIs), and control indicators (KCIs). Dive into quantitative approaches for operational risk analysis, including fault tree modeling and capital estimation methods. Examine severity and likelihood assessments, heatmap creation, and strategies for building operational resilience in important business services. Through detailed explanations and practical examples, gain the knowledge needed to effectively measure, assess, and manage operational risks in accordance with regulatory expectations and industry standards.