Operational Risk Aggregation across Business Lines Based on Frequency Dependence and Loss Dependence

Table 1

Parameter estimation and goodness of fit test results of frequency distribution.

Business line	Frequency		KS test
	Distribution	Parameters	𝐷 value	𝑃 value
BL3	Negative binomial	𝑟=1.34, 𝑝=0.98	0.18	0.59
BL4	Negative binomial	𝑟=5.01, 𝑝=0.87	0.14	0.87
BL5	Negative binomial	𝑟=3.55, 𝑝=0.80	0.12	0.93