Tall order: why a unified op risk taxonomy is still elusive

Banks vary in how they classify operational risk losses – and regulators are in no rush to change the status quo

Humans have an innate urge to classify: to put things in boxes and label them. Witness Carl Linnaeus’s taxonomy of the natural world, published in the 18th century and still in use today.

In a similar spirit, the Basel Committee on Banking Supervision first classified operational risk loss events as part of its Basel II capital reforms. More recently, industry consortium ORX released its own taxonomy of op risk loss types, which provided an updated and more granular version of its Basel

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here