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  • Operational Risk Qualitative Disclosures

    • PD-1.3.29

      The following additional qualitative disclosures (to Paragraph PD-1.3.21) should be made for operational risk:

      (a) Policies to incorporate operational risk measures into the management framework — for example budgeting, target-setting, and performance review and compliance;
      (b) Policies and processes:
      (i) To help track loss events and potential exposures;
      (ii) To report to these losses, indicators and scenarios on a regular basis; and
      (iii) To review the reports jointly by risk and line managers;
      (c) Policies on the loss mitigation process via contingency planning, business continuity planning, staff training and enhancement of internal controls, as well as business processes and infrastructures; and
      (d) A statement of how banks manage and control operational risks arising from pending legal actions.
      Amended: April 2016
      Amended April 2011
      Amended October 2010
      April 2008