RM-5.1.14
When monitoring their operational risk,
(a) Report regularly to the relevant level of management its operational exposures, loss experience (including if possible cumulative losses), and authorised deviations from the investment firm licensee's operational risk policy;
(b) Engage in exception-based escalation to management of:
(i) Unauthorised deviations from the investment firm licensee's operational risk policy;
(ii) Likely or actual breaches in predefined thresholds for operational exposures and losses, where set; and
(iii) Significant increases in the investment firm licensee's exposure to operational risk or alterations to its operational risk profile.
Adopted: July 2007