Standard - July 2019
Setting the standards for reporting operational risk losses across the financial sector
ORX leads the way in setting the reporting standards by which the financial services industry views operational risk events. By bringing together a wealth of knowledge and experience from our global community of members, we are able to produce high-quality operational risk reporting standards for both the banking and insurance industry.
Our standards ensure our members receive data of a comparable standard and in an agreed format. They are also used by non-members to support their operational risk event collection and reporting practices.
As part of our commitment to promoting effective operational risk management across the financial industry, we offer the Insurance Operational Risk Reporting Standards and the Banking Operational Risk Reporting Standards as free downloads.
About the standards
Our Insurance Operational Risk Reporting Standards (I-ORRS) define the requirements for member reporting their operational losses to ORX. The definitions and principles are designed to help you with consistent data categorisation and reporting.
The standards are in two parts. The first part (Sections 1-7) contains definitions, descriptions, reporting requirements and examples. The second part (Section 8) contains detailed data categories for business lines, event types and additional large loss event attributes.
The Insurance Operational Risk Reporting Standards was developed by leading global insurers to be in line with the CRO Forum high-level operational risk definitions, and wherever possible, to be consistent with the ORX Banking Operational Risk Reporting Standards.
Types of categories
The Insurance Operational Risk Reporting Standards prescribes categorisation of loss data beyond event type to enable a better understanding of loss events and their impact on profit and loss, and enhance benchmarking and modelling.
The large loss attributes provide information on root cause and function and provides for a free text event description.
In more detail
Each of the detailed sections has a consistent format outlining the principle or definition. This is followed by the requirement and examples of items to be included and excluded from reporting to ORX.
Our Insurance Definitions Working Group find it useful to refer to these definitions and principles when discussing issues around categorisation and various boundaries, in particular between operational and other risks.
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ORX Standards Senior Manager, ORX