Standard

Scenario Categories

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ORX Membership

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Loss Data & Standards Community

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Standard - June 2023

A scenario category (SC) is used to identify loss events which belong to a common scenario (severe yet plausible potential operational risk event). A scenario category applies to large loss events only.

These types of events may be experienced by many firms, with examples including rogue trader, insider trading, anti-money laundering (AML).

SCs were agreed by the Scenario Working Group in 2015 to improve the comparability of scenarios submitted to the ORX Scenario Library. Together with definitions, the SWG integrated examples of inclusion and exclusion to facilitate members when mapping internal scenarios.

Scenario categories are also used in our loss data to identify loss events which belong to a common scenario (severe yet plausible potential operational risk event).