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
Amended April 2011
Amended October 2010
April 2008