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Identify risks included by regulators in their definition of operational risks. Also, identify risks that are not included in this definition. Which distributions are commonly

  1. Identify risks included by regulators in their definition of operational risks. Also, identify risks that are not included in this definition.
  2. Which distributions are commonly used for loss frequency and loss severity?
  3. Explain how liquidity black holes occur. How can regulation lead to liquidity black holes?

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