Regulatory Alerts2022-01-01
The Taxonomy of Operational Risk (June 2022)
The Bank of Jamaica mandates that licensees under the Banking Services Act implement robust systems for collecting and classifying operational loss data to calculate capital charges under the standardized approach. The document defines specific criteria for identifying, recording, and treating gross and net losses, including exclusions for maintenance costs and inclusions for direct charges and legal expenses. It further establishes detailed taxonomies for loss event categories and rules for aggregating single versus multiple events to ensure accurate historical loss database management.
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