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An operational risk analyst is attempting to estimate a bank's loss severity distribution. However, there is a limited amount of historical data on operational risk losses. Which of the following is the best way to address this issue?
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.
