First, they want to build statistical models mapping the severity and frequency of past operational risk losses and use this to judge the amount of the bank's capital at risk from operational failures in the future.

ECONOMIST: Risk management

As the year went on, Fed officials shifted their focus away from the risk of inflation as they slowly began to recognize the severity of the crisis.

NPR: Transcripts Show Fed Underestimated Crisis In 2007

Risk models for natural catastrophes try to capture two things: severity (how hard a catastrophe might hit) and frequency (how often it might happen).

ECONOMIST: Reinsurance risks