{
  "url": "https://openlegislation.uk/eu-regulation-2018-959/article-5",
  "json_url": "https://openlegislation.uk/eu-regulation-2018-959/article-5.json",
  "legislation": "eur/2018/959",
  "legislation_title": "Commission Delegated Regulation (EU) 2018/959 of 14 March 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards of the specification of the assessment methodology under which competent authorities permit institutions to use Advanced Measurement Approaches for operational risk (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2018-959",
  "path": "article/5",
  "kind": "article",
  "number": "5",
  "heading": "Operational risk events related to financial transactions including those related to market risk",
  "text": "Competent authorities shall confirm that at least the following events, and the related losses, are classified as operational risk when assessing that an institution identifies, collects and treats data on operational risk events and losses that are related to financial transactions and market risk for the purposes of both management of operational risk and calculation of the AMA own funds requirement:\n(a) events due to operational and data entry errors, including the following:\n(i) failures and errors during the introduction or execution of orders;\n(ii) loss of data or misunderstanding of the data flow from the front to the middle and back offices of the institution;\n(iii) errors in classification;\n(iv) incorrect specification of deals in the term-sheet, including errors related to the transaction amount, maturities and financial features.\n(b) events due to failures in internal controls, including the following:\n(i) failures in properly executing an order to unwind a market position in case of adverse price movements;\n(ii) unauthorised positions taken in excess of allocated limits, irrespective of the type of risk they relate to.\n(c) events due to inadequate data quality and unavailability of IT environment, including technical unavailability of access to the market resulting in an inability to close contracts.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2018/959/article/5",
    "retrieved_at": "2026-11-01T14:44:03.296202+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."
}