Each month, the ORX News team publish a list of the five largest operational risk losses reported in the previous month. Read on to find out which operational risk loss events have had the most impact in Q3 2023.
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September 2023
1. Mixin Network - $200 million
Mixin Network loses USD 200 million in hack involving database of third-party cloud provider
2. Cigna - $172.3 million
Cigna pays USD 172.3 million to settle claims it filed false diagnoses to defraud Medicare
3. Shinhan Bank - $75 million
Shinhan Bank to pay USD 75 million over repeated AML compliance failures
4. Interactive Brokers - $55 million
Interactive Brokers fined USD 55 million by SEC and CFTC for extensive record-keeping failures
5. Direct Line - $37.9 million
Direct Line to refund GBP 30 million to overcharged customers
August 2023
1. Wells Fargo - $200 million
Wells to pay USD 200 million for staff misuse of personal devices and record-keeping failures
*2. Société Générale - $110 million
SocGen to pay USD 110 million for staff misuse of personal devices and record-keeping failures
*2. BNP Paribas - $110 million
BNP to pay USD 110 million for staff misuse of personal devices and record-keeping failures
3. Allstate - $90 million
Allstate pays USD 90 million to settle claims it misled investors over underwriting standards
4. Wells Fargo - $75 million
Wells Fargo to pay USD 75 million for charging excessive advisory fees on legacy accounts
5. Corficolombiana - $60.6 million
Corficolombiana to pay USD 60.6 million to SEC and DoJ over bribery and corruption scheme
*Disclaimer: ORX News added two losses at number 2 as the loss amounts were identical; however the events were unrelated, therefore considered two separate loss events.
July 2023
1. Tencent - $414.8 million
Tenpay fined CNY 3 billion for various governance violations
2. UBS - $268.5 million
UBS to pay USD 268.5 million over Credit Suisse's Archegos-related risk management failures
3. Bank of America - $253.4 million
BoA to pay USD 253.4 million for illegal credit card fees and opening fake accounts
4. Navient - $198.4 million
Navient pays USD 198.4 million class action over predatory student loan practices
5. UBS - $111.8 million
UBS to pay GBP 87.1 million over Credit Suisse's Archegos-related risk management failures
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