English

Spin Glass Model of Operational Risk

Risk Management 2010-02-19 v1 Computational Finance

Abstract

We analyze operational risk in terms of a spin glass model. Several regimes are investigated, as a functions of the parameters that characterize the dynamics. The system is found to be robust against variations of these parameters. We unveil the presence of limit cycles and scrutinize the features of the asymptotic state.

Keywords

Cite

@article{arxiv.1002.3560,
  title  = {Spin Glass Model of Operational Risk},
  author = {M. Bardoscia and P. Facchi and S. Pascazio and A. Trullo},
  journal= {arXiv preprint arXiv:1002.3560},
  year   = {2010}
}

Comments

12 Pages, 15 Figures