BANK 7.1.1 Introduction

(1) This Chapter sets out:
(a) the requirements for a banking business firm to have a specific policy to identify, measure, evaluate, manage and control or mitigate operational risk;
(b) the requirements for the firm to collect data on losses caused by operational risk events; and
(c) how to calculate the firm’s operational risk capital requirement.
Note The firm’s operational risk capital requirement is part of its risk-based capital requirement—see rule 3.2.5.
(2) Operational risk is the risk resulting from inadequate or failed internal processes, people and systems, or from external events. Operational risk includes legal risk but does not include strategic risk or reputational risk.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).
Amended by QFCRA RM/2020-2 (as from 1st January 2021).