Operational risk management in financial institutions has become more important due to Basel II requirements and recent loss events. This study looks at different ways to measure operational risk and estimate economic capital. By analyzing operational loss data from a Central European bank, the researchers found that the g&h distribution is the best method for modeling operational risk. They also discovered that using scenario analysis helps estimate capital and understand the impact of extreme events on the institution. This combined approach provides accurate estimates and helps reduce operational risk exposure.