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In the realm of operational risk analysis, where historical data on operational risk losses is limited, what is the most effective strategy for an analyst to adopt in order to estimate a bank's loss severity distribution accurately?
A
Generate additional data using Monte Carlo simulation and merge it with the bank's internal historical data.
B
Estimate the parameters of a Poisson distribution to model the loss severity of operational losses.
C
Estimate relevant probabilities using loss information that is published by credit rating agencies.
D
Merge external data from other banks with the bank's internal data after making appropriate scale adjustments.
