Operational Risk Aggregation Based on Business Line Dependence: A Mutual Information Approach

Table 1

The parameters of loss severity distribution for different business lines.

Business line	Distribution	Parameters		KS test ( value)
		meanlog	sdlog
TS	Lognormal	5.15	2.69	0.18
RB	Lognormal	7.83	2.31	0.43
CB	Lognormal	6.54	2.51	0.85