The Committee of European Banking Supervisors (CEBS) has published guidelines on operational risk mitigation techniques.
The guidelines are structured in three main sections which first deal with the general conditions that should be fulfilled for the recognition of operational risk mitigation instruments, both insurance contracts and other risk transferred mechanisms (ORTM). The next two sections then analyse the specific conditions for the use of insurance and for the use of ORTM.
The guidelines build on the provisions of the Capital Requirements Directive and the CEBS guidelines on the implementation, validation and assessment of Advanced Measurement (AMA) and Internal Ratings Based (IRB) approaches. The guidelines provide supervisory expectations and clarification on the recognition of risk transfer instruments within the AMA.
View CEBS guidelines on operational risk mitigation techniques, 22 December 2009