Level 1 event type classification

Description

Reference number

Internal fraud

Losses due to acts of a type intended to defraud and misappropriate property, excluding diversity/discrimination events, which involves at least one internal party (i.e. a party with a direct relationship to the institution or for which the institution is jointly liable), including instances where the internal party is acting in collusion with external parties.

1

External fraud

Losses due to acts of a type intended to defraud and misappropriate property, committed by an external party without the involvement of an internal party.

2

Employment practices and workplace safety

Losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity/discrimination events towards employees.

3

Clients, products and business practices

Losses other than fraud arising from failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), from business practices or from the nature or design of a product.

4

Damage to physical

assets

Losses arising from loss or damage to physical assets, employees or affiliates of the institution, public assets or non-affiliated people for which the institution is liable, due to natural disasters or other events, including accidents, wilful damage, war, civil disturbance, riots and terrorism.

5

Business disruption and system failures

Losses arising from disruption of business or system failures.

6

Execution, delivery and process management

Losses from failed transaction processing or process management and data management, from relations with trade counterparties, vendors and regulatory and tax authorities.

7