Matches in SemOpenAlex for { <https://semopenalex.org/work/W2285181818> ?p ?o ?g. }
- W2285181818 abstract "We study the dynamic decision making of a financial institution in the presence of a novel implementation friction that gives rise to operational risk. We distinguish between internal and external operational risks depending on whether the institution has control over them. Internal operational risk naturally arises in the context of model risk, as the institution exposes itself to operational errors whenever it updates and improves its investment model. In this case, it is no longer optimal to implement the best model available, thus leaving scope for endogenous deviation from it, and hence model sophistication. We show that the optimal exposure to operational risk may well become decreasing in the level of internal operational risk, which in turn makes the exposure to market risk less volatile. We uncover that financial constraints interact with operational risk, whether internal or external, and prompt the institution to always adopt a more sophisticated model. While such constraints are always detrimental when operational risk is internal, they may be beneficial, despite inducing an excessive level of sophistication, when it is external." @default.
- W2285181818 created "2016-06-24" @default.
- W2285181818 creator A5053675708 @default.
- W2285181818 creator A5063591004 @default.
- W2285181818 date "2016-02-01" @default.
- W2285181818 modified "2023-09-24" @default.
- W2285181818 title "A Theory of Operational Risk" @default.
- W2285181818 cites W1487458778 @default.
- W2285181818 cites W1512358644 @default.
- W2285181818 cites W1551275368 @default.
- W2285181818 cites W1554475779 @default.
- W2285181818 cites W1926137788 @default.
- W2285181818 cites W1963921091 @default.
- W2285181818 cites W1987037458 @default.
- W2285181818 cites W1991510170 @default.
- W2285181818 cites W2006688167 @default.
- W2285181818 cites W2011886674 @default.
- W2285181818 cites W2055325943 @default.
- W2285181818 cites W2066014798 @default.
- W2285181818 cites W2082317778 @default.
- W2285181818 cites W2084716442 @default.
- W2285181818 cites W2088703435 @default.
- W2285181818 cites W2098347405 @default.
- W2285181818 cites W2110607806 @default.
- W2285181818 cites W2117766186 @default.
- W2285181818 cites W2141678078 @default.
- W2285181818 cites W2146895789 @default.
- W2285181818 cites W2153041336 @default.
- W2285181818 cites W2165053060 @default.
- W2285181818 cites W2171544203 @default.
- W2285181818 cites W3121173952 @default.
- W2285181818 cites W3122118695 @default.
- W2285181818 cites W3122542355 @default.
- W2285181818 cites W3122549045 @default.
- W2285181818 cites W3123986693 @default.
- W2285181818 cites W3124560616 @default.
- W2285181818 cites W3125525779 @default.
- W2285181818 cites W3125679617 @default.
- W2285181818 cites W3126028011 @default.
- W2285181818 cites W8373828 @default.
- W2285181818 hasPublicationYear "2016" @default.
- W2285181818 type Work @default.
- W2285181818 sameAs 2285181818 @default.
- W2285181818 citedByCount "1" @default.
- W2285181818 countsByYear W22851818182017 @default.
- W2285181818 crossrefType "posted-content" @default.
- W2285181818 hasAuthorship W2285181818A5053675708 @default.
- W2285181818 hasAuthorship W2285181818A5063591004 @default.
- W2285181818 hasConcept C10138342 @default.
- W2285181818 hasConcept C112930515 @default.
- W2285181818 hasConcept C11489865 @default.
- W2285181818 hasConcept C144024400 @default.
- W2285181818 hasConcept C144133560 @default.
- W2285181818 hasConcept C151730666 @default.
- W2285181818 hasConcept C162118730 @default.
- W2285181818 hasConcept C162324750 @default.
- W2285181818 hasConcept C168725872 @default.
- W2285181818 hasConcept C17744445 @default.
- W2285181818 hasConcept C195094911 @default.
- W2285181818 hasConcept C199360897 @default.
- W2285181818 hasConcept C199539241 @default.
- W2285181818 hasConcept C21547014 @default.
- W2285181818 hasConcept C2778012447 @default.
- W2285181818 hasConcept C2778414658 @default.
- W2285181818 hasConcept C2778597612 @default.
- W2285181818 hasConcept C2779343474 @default.
- W2285181818 hasConcept C2779601481 @default.
- W2285181818 hasConcept C2780510313 @default.
- W2285181818 hasConcept C32896092 @default.
- W2285181818 hasConcept C36289849 @default.
- W2285181818 hasConcept C41008148 @default.
- W2285181818 hasConcept C86803240 @default.
- W2285181818 hasConceptScore W2285181818C10138342 @default.
- W2285181818 hasConceptScore W2285181818C112930515 @default.
- W2285181818 hasConceptScore W2285181818C11489865 @default.
- W2285181818 hasConceptScore W2285181818C144024400 @default.
- W2285181818 hasConceptScore W2285181818C144133560 @default.
- W2285181818 hasConceptScore W2285181818C151730666 @default.
- W2285181818 hasConceptScore W2285181818C162118730 @default.
- W2285181818 hasConceptScore W2285181818C162324750 @default.
- W2285181818 hasConceptScore W2285181818C168725872 @default.
- W2285181818 hasConceptScore W2285181818C17744445 @default.
- W2285181818 hasConceptScore W2285181818C195094911 @default.
- W2285181818 hasConceptScore W2285181818C199360897 @default.
- W2285181818 hasConceptScore W2285181818C199539241 @default.
- W2285181818 hasConceptScore W2285181818C21547014 @default.
- W2285181818 hasConceptScore W2285181818C2778012447 @default.
- W2285181818 hasConceptScore W2285181818C2778414658 @default.
- W2285181818 hasConceptScore W2285181818C2778597612 @default.
- W2285181818 hasConceptScore W2285181818C2779343474 @default.
- W2285181818 hasConceptScore W2285181818C2779601481 @default.
- W2285181818 hasConceptScore W2285181818C2780510313 @default.
- W2285181818 hasConceptScore W2285181818C32896092 @default.
- W2285181818 hasConceptScore W2285181818C36289849 @default.
- W2285181818 hasConceptScore W2285181818C41008148 @default.
- W2285181818 hasConceptScore W2285181818C86803240 @default.
- W2285181818 hasLocation W22851818181 @default.
- W2285181818 hasOpenAccess W2285181818 @default.
- W2285181818 hasPrimaryLocation W22851818181 @default.
- W2285181818 hasRelatedWork W1484364389 @default.