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Banking Rule Book
Text applicable on 7 Oct 2026Consolidated version of 1 Jan 2023In forceUpcoming changefrom 1 Jan 2027Unofficial text · authentic on EBA (PDF) (opens in a new tab)

GL-SREP Annex 1 — as applicable on 7 Oct 2026 (version of 1 Jan 2023)

Upcoming changeThis provision is amended or removed from 1 Jan 2027.View that version

Annex 1

Operational risk, examples of the link between losses and risk drivers

To illustrate how operational risk manifests itself, it is necessary to understand the relationship between the drivers of a specific risk event and the impact (i.e. outcome) of the risk event. Some examples are given in the following table(56).

People

Impact types Driver Risk event (outcomes)

Arson – a deliberate Fire – the event • Death/injury act committed by a • Financial loss/cost person • Property damage

• Customer disruption

Process

Manual error Inaccurate accounts • Financial loss

• Reworking accounts

Systems

IT software fault ATMs shut • Customer complaints down/unavailable • Compensation

• Reputational damage

• Regulatory censure

External

Very severe ice storm Buildings • Customer disruption inaccessible/invocation of • Financial loss contingency • Repair costs arrangements

(56)

Root cause gives rise to a risk event resulting in an impact or multiple outcomes, some of which are quantifiable.