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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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Your supervisor is an expert in market and credit risk. He recruits you to manage the operational risk department. He would like to use VaR to measure the firm's operational risk and proposes that you use the same VaR framework previously developed for market and credit risk. Which of the following arguments is a valid argument for why it is difficult to estimate an operational VaR using the same framework as market and credit VaR?

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