Table 10 Best-fitting distributions for frequency and the goodness-of-fit test results.

From: A cross-institutional database of operational risk external loss events in Chinese banking sector 1986–2023

Field

Negative binomial distribution

KS test

r

p

D value

P value

Causal factor

 Personnel

0.730

46.314

0.194

0.125

 External event

0.517

32.914

0.124

0.613

 Other factors

0.259

24.143

0.200

0.106

Event type

 Internal fraud

0.839

37.371

0.222

0.053

 External fraud

0.510

30.971

0.122

0.630

 Other types

0.268

35.029

0.156

0.325

Business lines

 Retail banking

0.544

40.829

0.190

0.141

 Commercial banking

0.878

18.829

0.155

0.336

 Other lines

0.373

43.714

0.163

0.279

  1. Notes. r and p are the parameters of the negative binomial distribution, where r is a specified number of failures, and p is the probability of success in each trial.
Back to article page