Uncertainty Reduction in Operational Risk Management Process

Guy Burstein, Inon Zuckerman

Research output: Contribution to journalArticlepeer-review


This paper proposes a new framework to reduce the variance and uncertainty in the risk assessment process. Today, this process is susceptible to background noise from sources of human factor biases and erroneous measurements. Our new framework consists of deconstructing the likelihood of failure function into its sub-factor and then reconstructing it in a formula that can reduce the variance and biases of a human auditor judgment. We tested our new framework on both a questionnaire study and a simulation of the risk assessment process, and the improvement in reducing the variance is significant.

Original languageEnglish
Article number77
Issue number5
StatePublished - May 2024


  • operational risk
  • risk assessment
  • risk factors
  • risk management
  • uncertainty reduction

All Science Journal Classification (ASJC) codes

  • Accounting
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management


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