Patent Document ID: 8050959
Application ID: 11869388
Patent Flag: 1

Claim One:
1. A computer-implemented method for analyzing operational risk associated with one or more organizations, comprising: receiving operational loss data from a plurality of organizations based on historical loss events, which includes confidential information regarding one or more of the plurality of organizations, wherein the operational loss data is received by a third-party risk management entity that is a separate entity from the plurality of organizations; pooling the data received from the plurality of organizations, including the confidential information; generating one or more operational risk models for one of the plurality of organizations using the pooled data, wherein the confidential information is not removed from the pooled data, wherein the one or more operational risk models includes an effect model that is specific to the one of the plurality of organizations, the effect model including at least one of a scale effect to a distribution shape that is common to the plurality of organizations and a frequency effect that scales a common mean of the plurality of organizations; and transmitting the one or more operational risk models to the one organization; wherein the steps of the method are performed by one or more processors; wherein the scale effect is a model that includes the following parameters: ∑ m ⁢ ⁢ β m ⁢ I m = β 1 ⁢ I 1 + β 2 ⁢ I 2 + … + β m ⁢ I m wherein the plurality of organizations are indexed by m, βm represents the scale effect of organization m, and Im is an indicator variable that is equal to 1 for organization m and is equal to 0 for other ones of the plurality of organizations; and wherein the frequency effect is a model that includes the following parameters: ∑ m ⁢ ⁢ α m ⁢ I m = α 1 ⁢ I 1 + α 2 ⁢ I 2 + … + α m ⁢ I m wherein the plurality of organizations are indexed by m, α m represents the scale of the common mean, and Im is an indicator variable that is equal to 1 for organization m and is equal to 0 for other ones of the plurality of organizations.