The article discusses how UniCredit Group developed a system to measure operational and reputational risk. They created a new function and control system to address challenges and manage these risks. The researchers used a dataset to calculate operational risk, including internal and external data sources. They applied loss distribution approaches and extreme value theory to estimate capital at risk. The study found that using parametric models and EVT helped estimate capital at risk accurately. Stress testing and setting minimum loss thresholds were also important in managing operational risk effectively.