Monitoring and Reporting
OM-1.3.9
Senior management must implement a process to regularly monitor operational risk profiles and material exposures to losses. Appropriate reporting mechanisms must be in place at the board,senior management , and business line levels that support proactive management of operational risk.Added: January 2020OM-1.3.10
Banks must ensure that the operational risk reports are comprehensive, accurate, consistent and actionable across business lines and products.
Added: January 2020OM-1.3.11
Reporting should be timely, and the bank must be able to produce reports in both normal and stressed market conditions. The frequency of reporting must reflect the risks involved and the pace and nature of changes in the operating environment. The results of these monitoring activities must be included in regular management and Board reports. Reports generated by (and/or for) supervisory authorities must also be reported internally to
senior management and the Board, where appropriate.Added: January 2020OM-1.3.12
Operational risk reports may contain internal financial, operational, and compliance indicators, as well as external market or environmental information about events and conditions that are relevant to decision-making. Operational risk reports should include:
(a) Breaches of the bank's risk appetite and tolerance statement, as well as thresholds or limits;(b) Details of recent significant internal operational risk events and losses; and(c) Relevant external events and any potential impact on the bank and operational risk capital.Added: January 2020OM-1.3.13
Data capture and risk reporting processes should be analysed periodically with a view to continuously enhancing risk management performance, as well as advancing risk management policy, procedures and practices.
Added: January 2020
