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Modelling Measuring and Hedging Operational Risk

Shelf score 7.5 / 10

On Modelling Measuring and Hedging Operational Risk · Marcelo G. Cruz · John Wiley & Sons

Published 4 July 2026

This book serves as a practitioner guide to operational risk loss distributions, capital allocation, and hedging frameworks.

Overview

Published in 2002 by John Wiley & Sons, this work by Marcelo G. Cruz focuses on the quantitative aspects of risk management, particularly operational risk. It is oriented toward professionals in risk management and quantitative analysis, providing insights into the methodologies for measuring and managing operational risk.

The book addresses various frameworks for capital allocation and hedging, making it a practical resource for those involved in operational risk assessment. It aims to equip risk managers and quants with the necessary tools and techniques to effectively model and mitigate operational risks in their organisations.

By area & interest

  • Operational Risk Loss Distributions

    The book discusses the importance of understanding loss distributions in operational risk management, providing frameworks for their application.

  • Capital Allocation Techniques

    It covers methodologies for capital allocation, essential for ensuring that organisations maintain adequate capital reserves against potential operational losses.

  • Hedging Frameworks

    The text presents various hedging frameworks that can be employed to mitigate operational risk, offering practical guidance for implementation.

Basis of this assessment

The assessment is based on the catalogue description and the topics listed for the book.

Strengths

The book provides a comprehensive guide to operational risk management, with a strong focus on quantitative methods and practical applications. Its targeted approach makes it particularly useful for risk managers and quantitative analysts.

Limitations

The publication is from 2002, which may limit its relevance in the context of recent developments in risk management practices and regulatory changes.

Ideal reader

This book is ideal for risk managers and quantitative analysts seeking to deepen their understanding of operational risk measurement and management techniques.

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