Operational Risk Policy Risk Management Policy Planning of

Operational Risk Policy

Risk Management Policy • Planning of operational risk management. • Identification of business lines. • Mapping of business lines. • Determine sources of external loss data. • Identify process of inferring external loss data. • Classification of loss events. • Consolidation of loss events. • Reporting procedure for loss events.

Mapping Business Events • Business units • Business lines • Activity groups

Investment Banking Unit

Commercial Banking Unit

Other Business Units

Audit Policy of Operational Risk Management • Fixing audit bench standards. • Recognition of high loss events. • Suggestive measures of risk mitigation. • Strategies for functional departments. • Adequacy of risk assessment. • Compliance procedures for audit. • Review of internal audit systems.

Technology Policy • Procurement of systems • Development of software • Analysis procedures for operational risk • Data base management • Estimation of capital charges for technology investment • Compilation of technology profiles

Functional Policy • Identification of operational loss events – Products – Processes – Systems • Development of reporting formats – Data collection – Department reports – Events reports

Functional Policy • Operational risk management committee • Business line • Department policy • Circle office policy • Bank area policy • Field level policy

Circle Office Policy • Recognition of operational loss • Measurement procedures • Review of operational loss data • Mitigation procedures • Timely data transfer to head office

Branch Office Policy • Identification of operational loss events. • Preparation of operational loss reports. • Timely transfer of data to circle office. • Timely transfer to operational risk management committee.