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3.2.5 Quantitative assessment of operational risks.

Code

Vega-Lite Chart

{
  "$schema": "https://vega.github.io/schema/vega-lite/v5.json",
  "description": "Horizontal layout of histogram, line chart, and product chart with centered plus and equal signs.",
  "data": {
    "sequence": {
      "start": 1,
      "stop": 1000,
      "step": 1,
      "as": "EventCount"
    }
  },
  "transform": [
    {
      "calculate": "samplePoisson(50)",
      "as": "NumberOfEvents"
    },
    {
      "calculate": "sampleLogNormal(10, 1)",
      "as": "AvgSeverity"
    },
    {
      "calculate": "datum.NumberOfEvents * datum.AvgSeverity",
      "as": "Product"
    }
  ],
  "hconcat": [
    {
      "title": [
        "Frequency Histogram",
        "Poisson Distribution (λ=50)"
      ],
      "width": 250,
      "height": 250,
      "mark": "bar",
      "transform": [
        {
          "bin": {
            "maxbins": 50
          },
          "field": "NumberOfEvents",
          "as": [
            "binnedNumberOfEvents",
            "binnedNumberOfEventsEnd"
          ]
        },
        {
          "aggregate": [
            {
              "op": "count",
              "as": "Frequency"
            }
          ],
          "groupby": [
            "binnedNumberOfEvents",
            "binnedNumberOfEventsEnd"
          ]
        },
        {
          "calculate": "datum.Frequency / 1000 / (datum.binnedNumberOfEventsEnd - datum.binnedNumberOfEvents)",
          "as": "Density"
        }
      ],
      "encoding": {
        "x": {
          "field": "binnedNumberOfEvents",
          "type": "quantitative",
          "axis": {
            "title": "Number of Events"
          }
        },
        "y": {
          "field": "Density",
          "type": "quantitative",
          "axis": {
            "title": "Density"
          }
        },
        "color": {
          "value": "steelblue"
        }
      }
    },
    {
      "width": 50,
      "height": 250,
      "mark": {
        "type": "text",
        "align": "center",
        "baseline": "middle",
        "fontSize": 30,
        "text": "+"
      }
    },
    {
      "title": [
        "Severity Distribution",
        "Lognormal Distribution (μ=2, σ=1)"
      ],
      "width": 250,
      "height": 250,
      "mark": "line",
      "transform": [
        {
          "density": "AvgSeverity",
          "bandwidth": 50000,
          "counts": true
        }
      ],
      "encoding": {
        "x": {
          "field": "value",
          "type": "quantitative",
          "axis": {
            "title": "Average Severity"
          }
        },
        "y": {
          "field": "density",
          "type": "quantitative",
          "axis": {
            "title": "Density"
          }
        },
        "color": {
          "value": "steelblue"
        }
      }
    },
    {
      "width": 50,
      "height": 250,
      "mark": {
        "type": "text",
        "align": "center",
        "baseline": "middle",
        "fontSize": 30,
        "text": "="
      }
    },
    {
      "title": [
        "Loss Distribution",
        "Frequency x Avg Severity"
      ],
      "width": 250,
      "height": 250,
      "mark": "line",
      "transform": [
        {
          "density": "Product",
          "bandwidth": 1000000,
          "counts": true
        }
      ],
      "encoding": {
        "x": {
          "field": "value",
          "type": "quantitative",
          "axis": {
            "title": "Loss"
          }
        },
        "y": {
          "field": "density",
          "type": "quantitative",
          "axis": {
            "title": "Density"
          }
        },
        "color": {
          "value": "steelblue"
        }
      }
    }
  ]
}