Active Management of Operational Risk in the Regimes of the “Unknown”: What Can Machine Learning or Heuristics Deliver?
Year: 2018
Type: article
Abstract: Advanced machine learning has achieved extraordinary success in recent years. “Active” operational risk beyond ex post analysis of measured-data machine learning could provide help beyond the regime of traditional statistical analysis when it comes to the “known unknown” or even the “unknown unknown.” While machine learning has been tested successfully in the regime of the “known,” heuristics typically provide better results for an active operational risk management (in the sense of forecasting). However, precursors in existing data can open a chance for machine learning to provide early warnings even for the regime of the “unknown unknown.”
Source: Risks
DOI: 10.3390/risks6020041
Authors: Udo Milkau, Jürgen Bott
Language: English
Topic: Risk and Safety Analysis
Subfield: Safety, Risk, Reliability and Quality
Field: Engineering
Domain: Physical Sciences
Open Access status: gold
Estimated APC paid: $2,172
OpenAlex ID: W2801943406