A Review of Correction Techniques for Inherent Biases in External Operational Risk Loss Data

Please note that since this Information Paper was released in November 2007 there have been significant developments in operational risk management and measurement practices, and therefore the contents of this Paper should be considered in the light of these improvements. Authorised deposit-taking institutions, especially those with approval to use an Advanced Measurement Approach (as stated in paragraph 23 of APS 115), need to ensure where industry practices evolve and improve over time that these developments are assessed as part of their own practices. APRA will be releasing further guidance in relation to operational risk practices in the near future.