AUTHOR=Medina Fabio Augusto Scalet , Kimura Herbert 

TITLE=Impacts of the COVID-19 pandemic on operational losses

JOURNAL=Frontiers in Applied Mathematics and Statistics

VOLUME=Volume 8 - 2022

YEAR=2022

URL=https://www.frontiersin.org/journals/applied-mathematics-and-statistics/articles/10.3389/fams.2022.940102

DOI=10.3389/fams.2022.940102

ISSN=2297-4687

ABSTRACT=The main objective of the present study was to determine whether the COVID-19 pandemicimpacted the frequency and severity of financial institutions’ operational losses. We selectedfour   types   of operational-risk events and, applying linear   regression,   concluded   that   thepandemic impacted the severity of operational losses. Regarding the frequency of operationallosses, we observed no statistically significant  difference between pre- and postpandemiclosses;   however,   regarding   the   severity   of   losses,   we   observed   an   increase   in   thepostpandemic period for the aggregate data, and when analyzing the types of operational-riskevents individually, we observed that  the frequency of some events increased and othersdecreased after the pandemic, requiring a detailed investigation of the reasons for the increaseor decrease in the severity of losses.