Regulatory Alerts2025-01-01
Final Report on Draft Regulatory Technical Standards on Operational Risk Losses Mandates
The European Banking Authority issued final regulatory technical standards to establish a harmonized operational risk taxonomy, define exemptions for calculating annual operational risk losses, and specify adjustments for merged or acquired entities. The new taxonomy mandates a seven-level event type structure with specific attributes, including flags for ESG risks, to ensure consistent loss data classification across the banking sector. Institutions with a business indicator above EUR 750 million must adhere to these standards, with temporary derogations available for those facing unduly burdensome calculation requirements following mergers or acquisitions.
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