Legal references and instructions

Row number

Explanation

(a)

Disclosure of the risk management objectives and policies

In accordance with Article 435(1) CRR, institutions shall disclose their risk management objectives and policies for operational risk, including:

(b)

Disclosure of the approaches for the assessment of minimum own fund requirements

Institutions shall provide a description of the methods used for calculating the own funds requirements for operational risk and the methods for identifying, assessing and managing operational risk.

In case of partial use of methodologies, institutions shall disclose the scope and coverage of the different methodologies used.

(c)

Description of the AMA methodology approach used (if applicable)

Institutions that disclose the information on the operational risk in accordance with Article 312(2) CRR shall disclose a description of the methodology used, including a description of standards on the external and internal data referred to in Articles 322(3) and (4) CRR.

(d)

Disclose the use of insurance for risk mitigation in the Advanced Measurement Approach (if applicable)

Institutions should provide information on the use of insurances and other risk transfer mechanism for operational risk mitigation when using Advance measurement approaches in accordance with Article 454 CRR.

Instructions for completing the disclosure template EU OR1

Column

Explanation

a, b, c

Relevant Indicator

The term ‘relevant indicator’ refers to ‘the sum of the elements’ at the end of the financial year as defined in Table 1 (for institutions using BIA) included in Article 316(1) CRR. For institutions using TSA or ASA the ‘relevant indicator’ at the end of financial year as defined in Articles 317 to 319 CRR.

Institutions using the relevant indicator to calculate the own funds requirements for operational risk (BIA, TSA and ASA) shall disclose the relevant indicator for the respective years in columns a to c of this template. Moreover, in the case of a combined use of different approaches as referred in Article 314 CRR, institutions also disclose the relevant indicator for the activities subject to AMA. AMA banks shall also disclose the relevant indicator for the activities subject to AMA.

If the institution has less than 3 years of data on ‘relevant indicator’ available, the available historical data (audited figures) shall be assigned by priority to the corresponding columns in the template. If, for instance, historical data for only one year is available, it shall be disclosed in column c of this template. If it seems reasonable, the forward looking estimates shall then be included in column b (estimate of next year) and column a (estimate of year +2) of this template.

Furthermore if there are no historical data on ‘relevant indicator’ available the institution may disclose forward-looking business estimates used for own funds requirements computation.

d

Own fund requirements

The own fund requirements calculated in accordance with the approach used, in accordance with Articles 312 to 324 CRR. The resulting amount is disclosed in column d of this template.

e

Risk exposure amount

Point (e) of Article 92(3) and Article 92(4) CRR. Own funds requirements in column d of this template multiplied by 12.5.

Row

Explanation

1

Banking activities subject to Basic indicator approach (BIA)

This row shall present the amounts corresponding to activities subject to the BIA to calculate the own funds requirements for operational risk (Articles 315 and 316 CRR).

2

Banking activities subject to Standardised (TSA) / Alternative Standardised (ASA) approaches

This row shall present the own funds requirements calculated in accordance with the TSA and ASA (Articles 317 to 320 CRR).

3

Subject to TSA

In the case of using the TSA, relevant indicator for each respective year shall include all the business lines as defined in table 2, included in Article 317 CRR.

4

Subject to ASA

Institutions using the ASA (Article 319 CRR) shall disclose the relevant indicator for the respective years.

5

Banking activities subject to Advanced measurement approaches AMA

The relevant data for AMA institutions (Article 312(2) and Articles 321 to 323 CRR) shall be disclosed.

In the case of combined use of different approaches in accordance with Article 314 CRR, the relevant indicator for activities subject to AMA shall also be disclosed. AMA banks shall also disclose the relevant indicator for the activities subject to AMA.