The draft RTS on establishing a risk taxonomy on operational risk provide a list of operational risk event types, categories and attributes that institutions must use when recording operational risk loss events, in line with the current framework and the international standards as well.
The draft RTS on the conditions under which it would be unduly burdensome for an institution to calculate the annual operational risk loss recognise cases when it would be disproportionate for an institution to promptly calculate the annual operational risk loss. In such cases, the draft RTS allow for a temporary waiver from the requirement to calculate the annual operational risk loss.
Finally, the draft RTS on the adjustments to an institution’s loss data set following the inclusion of losses from merged or acquired entities or activities provide indications on the currency and the risk taxonomy to be used when incorporating the loss data set of merged entities or activities.
Consultation process
Comments to this consultation can be sent to the EBA by clicking on the “Send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 6 September 2024. All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place in the form of a webinar on 04 July 2024, 15:30 – 17:00 CET. The EBA invites interested stakeholders to register using this link by 02 July 2024, 16:00 CET. The dial-in details will be communicated to the registered participants after the registration deadline.
Legal basis and background
Article 317(9) of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR), mandates the EBA to develop draft RTS to establishing a risk taxonomy on operational risk that complies with international standards and a methodology to classify the loss events included in the loss data set based on that risk taxonomy on operational risk. Article 316(3) of the CRR, mandates the EBA to develop draft RTS to specify the conditions under which it would be unduly burdensome for an institution to calculate the annual operational risk loss. Article 321(2) of the CRR3 mandates the EBA to draft RTS to determine the adjustments to an institution’s loss data set following the inclusion of losses from merged or acquired entities or activities.
Documents
- Consultation paper on draft RTS on operational risk loss – Download