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OPERATIONAL RISK MANAGEMENT SCENATIO QUESTION 4 (15 MARKS) The frequency and severity of an organization's losses can be determined by looking at the lognormal distribution
OPERATIONAL RISK MANAGEMENT
SCENATIO
QUESTION 4 (15 MARKS)
The frequency and severity of an organization's losses can be determined by looking at the lognormal distribution of losses, which can also help determine how to finance these risks. Additionally, this might be a factor in determining the organization's risk appetite. Explain the concept of risk appetite. Discuss the best financing method for the risks shown for each sector by analyzing the below lognormal distribution. (15 MARKS).
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