Operational risk measurement: integrating the amplification effects of reputational risk

In a groundbreaking approach, this paper introduces a method to assess operational risk losses that combines both operational and reputational risks. It highlights how reputational damage can amplify operational risks, leading to more comprehensive risk management strategies. This integration is crucial for organizations looking to better understand and mitigate potential losses, especially in today's interconnected and transparent business environment where reputation can significantly impact operational outcomes. The implications suggest a shift towards more holistic risk measurement frameworks.