1 to 75

Based on the relevant requirements specified in regulation 33(9) a bank that adopted the advanced measurement approach for the calculation of the bank's required amount of capital and reserve funds relating to operational risk shall complete items 1 to 75.

2, 9, 16, 23, 30, 37, 44, 51, 58

The gross loss amount shall include any expenses incurred by the reporting bank in relation to the loss event but not any amount in respect of an investment programme, an opportunity cost amount, an amount relating to revenue forgone or any amount constituting a gain. For example, when a computer related fault results in a break in business activity and market rates move against the bank during the period that the fault continues the gross loss amount shall include any loss arising from a subsequent unwinding of the position, any related amount paid to a client, any cost relating to a consultant specifically engaged to resolve the problem and any related amount paid in respect of overtime. However, when the bank decides to invest in hardware in order to prevent a similar situation, the amount in respect of the said investment in hardware shall not be included into the gross loss amount.

4, 11, 18, 25, 32, 39, 46, 53, 60

These items shall reflect the aggregate amount of insurance recoveries and any other relevant recoveries received by the reporting bank in the current reporting period.

In order to ensure an accurate measure of recovery rates the reporting bank shall not net off an amount related to a recovery against the relevant gross loss amount but shall instead separately capture the said recovery amount.

For the purposes of this regulation 34 a recovery means an independent occurrence that is separate from the original event and in terms of which funds are recovered by or contributed to the reporting bank, which funds are usually received from or by a third party.

When the recovery in respect of an event exceeds the amount initially written off, a gain would be derived in respect of the reported event.

5, 12, 19, 26, 33, 40, 47, 54, 61

These items shall reflect the aggregate amount of insurance recoveries and any other relevant recoveries received by the reporting bank in the current reporting period in respect of losses recorded in previous reporting periods.

9 and 10

A bank shall report in column 9 the relevant de minimis gross loss threshold amount specified by the bank for the collection of internal loss data, as envisaged in regulation 33(9)(d)(v)(B)(iv), which de minimis gross loss threshold amount shall be subject to the minimum amount that may be specified by the Registrar from time to time in order to ensure broadly consistent data collection between banks that adopted the advanced measurement approach for the calculation of their respective capital requirements relating to operational risk, provided that when the bank specified different threshold amounts within a specified business line the bank shall report in column 10 the highest threshold amount specified in respect of the relevant business line.

1 to 21

In respect of the specific recorded loss event identified in column 1, which loss event was incurred in the period to which the relevant reporting period relates, and in respect of which loss event the recorded gross loss amount exceeds the relevant threshold amount specified by the bank or Registrar, a bank shall report in columns 2 to 21 the relevant required information.

3

This column shall reflect the aggregate amount of gross loss arising from the loss event types specified in regulation 33(9)(d)(iv), that is, from internal fraud, external fraud, employment practices and workplace safety, clients and products and business practices, damage to physical assets, business disruption and system failure, and execution, delivery and process management.

5 and 6

These columns shall respectively reflect the aggregate amounts in respect of losses recovered from insurance or other third parties, which recovery may be direct or indirect.

An indirect recovery relates to a recovery paid for in advance, such as a recovery of loss through an insurance contract, whereas a direct recovery relates to a recovery of loss that is obtained without the aforesaid payment in advance.

Normally the respective categories of recovery focus on where or how the relevant funds were obtained, and, for example, may include—

(a)   asset seizure/ collateral, that is, the proceeds are derived from the liquidation of assets or collateral;

(b)   contractual recovery, that is, payment is received from a third party service provider or vendor in terms of a contractual agreement or arrangement;

(c)   client recovery, that is, payment is received from a client or employee;

(d)   interest earned, that is, interest is earned on failed settlement or another operational event that results in a subsequent liability of a client or other third party;

(e)   legal judgement, that is, payment is received in terms of a court order or judgement in favour of the reporting bank;

(f)    insurance recovery, that is, payment is received in terms of an insurance policy, including any recovery of an amount from an insurance subsidiary or captive insurance entity.

8

This column shall reflect the relevant event date, that is, the date on which the relevant loss event occurred or commenced.

10

This column shall reflect the relevant date on which the bank first received payment as compensation for the relevant loss event, which payment may have been received from an insurance company.

11

This column shall reflect the most recent date on which the bank received payment as compensation for the relevant loss event, which payment may have been received from an insurance company.

12 to 19

In respect of the specified business lines these columns shall reflect the percentage breakdown of the relevant incurred gross loss amount reported in column 3.

20

For the purposes of these Regulations an event shall be deemed to have ended or be closed when all avenues of recovery have been exhausted and/or when the relevant reporting bank decides not to further ensue recovery.