{
  "url": "https://openlegislation.uk/eu-regulation-2013-575/article-321",
  "json_url": "https://openlegislation.uk/eu-regulation-2013-575/article-321.json",
  "legislation": "eur/2013/575",
  "legislation_title": "Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2013-575",
  "path": "article/321",
  "kind": "article",
  "number": "321",
  "heading": "Qualitative standards",
  "text": "The qualitative standards referred to in Article 312(2) are the following:\n(a) an institution's internal operational risk measurement system shall be closely integrated into its day-to-day risk management processes;\n(b) an institution shall have an independent risk management function for operational risk;\n(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;\n(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;\n(e) an institution shall subject its operational risk management processes and measurement systems to regular reviews performed by internal or external auditors;\n(f) an institution's internal validation processes shall operate in a sound and effective manner;\n(g) data flows and processes associated with an institution's risk measurement system shall be transparent and accessible.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "X",
      "label": "X1",
      "text": "Substituted by Corrigendum to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2013/575/article/321",
    "retrieved_at": "2026-11-01T14:48:36.198705+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}