2 CB (Cost-Benefit) – In this level, the bank includes the following types of risks: - Risks which are avoidable under all circumstances and the Overall Threat Likelihood of risk is or above and “High” the benefits of risk treatment (e.g. controls) does not justify the level of investments required to implement the risk treatments Risks within the criteria defined for Level 2 should also be considered for this level. By defining this the bank recognizes that it may not be able to mitigate all high exposure risks when the benefits of risk treatment does not justify the level of investments required to implement the risk treatments. However, by informing the board and senior executives about such risks, the bank can make an informed decision to retain high levels of exposure for such risks. 3 In this level, the bank includes the following types of risks: - Risks which are avoidable under all circumstances and the Overall Threat Likelihood of risk is below and “High” the Overall Threat Level is above the Target Threat Level defined for the risk and the bank has resources to prevent the risk and the benefits of risk treatment (e.g. controls) justifies the level of investments required to implement the risk treatments Bank’s operational risk framework requires risk owners to define a Target Threat Level for each risk owned by them. By defining this level, the bank wants to escalate any low or medium exposure risks that are beyond their pre-defined Target Threat Level. within the criteria defined for Level 2 should also be considered for this level. Level 3 RC (Resource Constraints) – In this level, the bank includes the following types of risks: - which are avoidable under all circumstances and the Overall Threat Likelihood of risk is below and “High”
2 – CB (Cost-Benefit) In this level, the bank includes the following types of risks: - Risks which are avoidable under all circumstances and the Overall Threat Likelihood of risk is “High” or above and the benefits of risk treatment (e.g. controls) does not justify the level of investments required to implement the risk treatments Risks within the criteria defined for Level 2 should also be considered for this level. By defining this the bank recognizes that it may not be able to mitigate all high exposure risks when the benefits of risk treatment does not justify the level of investments required to implement the risk treatments. However, by informing the board and senior executives about such risks, the bank can make an informed decision to retain high levels of exposure for such risks. 3 In this level, the bank includes the following types of risks: - Risks which are avoidable under all circumstances and the Overall Threat Likelihood of risk is below “High” and the Overall Threat Level is above the Target Threat Level defined for the risk and the bank has resources to prevent the risk and the benefits of risk treatment (e.g. controls) justifies the level of investments required to implement the risk treatments Bank’s operational risk framework requires risk owners to define a Target Threat Level for each risk owned by them. By defining this level, the bank wants to escalate any low or medium exposure risks that are beyond their pre-defined Target Threat Level. within the criteria defined for Level 2 should also be considered for this level. Level 3 – RC (Resource Constraints) In this level, the bank includes the following types of risks: - which are avoidable under all circumstances and the Overall Threat Likelihood of risk is below “High” and
riskspotlightoperationalriskappetitestatementtemplatev1.0.docx