# 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), Article 324: Loss event type classification

Extent: E+W+S+N.I.

The loss events types referred to in point (b) of Article 322(3) are the following:
Table 3
Event-Type Category
Definition
Internal fraud
Losses due to acts of a type intended to defraud, misappropriate property or circumvent regulations, the law or company policy, excluding diversity/discrimination events, which involves at least one internal party
External fraud
Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third party
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
Clients, Products & Business Practices
Losses arising from an unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature or design of a product
Damage to Physical Assets
Losses arising from loss or damage to physical assets from natural disaster or other events
Business disruption and system failures
Losses arising from disruption of business or system failures
Execution, Delivery & Process Management
Losses from failed transaction processing or process management, from relations with trade counterparties and vendors

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Source: https://www.legislation.gov.uk/eur/2013/575/article/324 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-575/article-324
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.