Circular CONAU 1-1662: Operational Risk Event Database Minimum Threshold Adjustments

"Year of the Reconstruction of the Argentine Nation" COMMUNICATION "A" 8187 27/01/2025 TO FINANCIAL ENTITIES:
Ref.: Circular
CONAU 1-1662:
R.I. Operational Risk Event Database. Minimum Threshold Adjustments ___________________________________________________________________________ We address you to inform you of the modifications introduced in the reporting regime referenced. In this regard, the minimum threshold for the collection of risk events applicable for the 2025 period has been updated, amounting to $270,000 (two hundred seventy thousand pesos) or its equivalent in foreign currency. Finally, the sheet corresponding to replace in the Consolidated Text of the reference is attached. We greet you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Rodrigo J. Danessa Estela M. del Pino Suárez Main Manager of Reporting Regime and Information Centers General Manager of Reporting Regime and Protection of Users of Financial Services

ANNEX

II – GENERAL INSTRUCTIONS
All events that, being quantifiable, have generated losses or have been accounted for as provisions shall be reported. Opportunity costs and quasi-losses (understood as operational events that do not result in a financial loss; the absence of losses in these cases is not due to preventive action by the entity, but purely by circumstantial factors) may also be reported to the extent that they can be clearly identified. Recoveries must be considered as an independent event, but linked through the root cause to the original event. Events whose loss amount, without considering recoveries, exceeds a minimum threshold of $270,000 (or its equivalent in foreign currency) during the month shall be included. However, events of similar nature that individually do not reach the minimum amount but whose sum exceeds it and occur in the same month (repetitive losses), shall be included and reported in a consolidated manner as a single event. Amounts shall be expressed in units, without decimals. For the purpose of rounding magnitudes, values shall be incremented by one unit when the first digit of the fractions is equal to or greater than 5, discarding the latter if they are lower. In the case of events involving amounts in foreign currency, they must be converted to pesos using the reference exchange rate of the US dollar disseminated by this Institution. In the case of foreign currencies other than the US dollar, they shall be converted to this currency using the swap rates communicated by the trading desk of the Central Bank of the Argentine Republic. When dealing with events that generate multiple impacts (losses and/or gains), the original cause (or root event) that caused the subsequent losses must be taken into account, so that they shall be considered as if they were a single event. Indirect costs that are covered internally without incurring additional expense shall not be included. In cases where extraordinary expenditure must be incurred, these shall be included in the concept of individual incurred loss or repetitive incurred loss, as appropriate. An operational risk event that also affects other types of risks (credit or market) shall equally be registered in the OR database when the main cause of the loss is an event of an operational nature, specifying the link with the other risk. Likewise, it is clarified that the implementation of the loss event database, regardless of the means used for its registration, must contemplate the preservation of the integrity of already registered data, not allowing, once entered, their subsequent alteration or modification. In the case that the adopted solution is an automated system, it must comply with all requirements regarding integrity, confidentiality, and security, indicated in the Standards on "Minimum requirements for management, implementation and control of risks related to information technology, information systems and associated resources for Financial Entities". B.C.R.A. REPORTING REGIME FOR
SUPERVISION (R.I. – S) 8 – DATABASE ON OPERATIONAL RISK EVENTS Version: 6th COMMUNICATION "A" 8187 Validity:
01/01/2025 Page 2