Operational Risk Management

The traditional way to measure and manage operational risk is based on 1) VaR-EVT method and 2) Bayesian model. These two method are mainly focusing on risk's quantity and key factors respectively. However, either of them give a guidance about how to prevent operational risk by its nature. My thesis produced a new method for operational risk management, which is named triple-game theory operational management model. Under this model, I found:1) The fundamental way of preventing operational risk is give the 'society' the authority to control operational risk, instead of the traditional way (control by the'firm'),2) To avoided people or system to make operational loss, owners'should raise the profit share of the risk executors.