Article 321 Qualitative standardsX1

The qualitative standards referred to in Article 312(2) are the following:

1. (a)

   an institution's internal operational risk measurement system shall be closely integrated into its day-to-day risk management processes;

2. (b)

   an institution shall have an independent risk management function for operational risk;

3. (c)

   an institution shall have in place regular reporting of operational risk exposures and loss experience and shall have in place procedures for taking appropriate corrective action;

4. (d)

   an institution's risk management system shall be well documented. An institution shall have in place routines for ensuring compliance and policies for the treatment of non-compliance;

5. (e)

   an institution shall subject its operational risk management processes and measurement systems to regular reviews performed by internal or external auditors;

6. (f)

   an institution's internal validation processes shall operate in a sound and effective manner;

7. (g)

   data flows and processes associated with an institution's risk measurement system shall be transparent and accessible.