ORX News quarterly newsletter 2017

  • 19 May 2017
ORX News

Our ORX News quarterly newsletter includes features and analysis of the latest trends in publicly reported operational risk events in the financial services industry. It summarises the most important developments in operational risk every quarter.

Summary of Quarter 1, 2017


The majority of banking losses this quarter were attributed to Internal Theft & Fraud, followed closely by Improper Business or Market Practices.

In Spain, an industry-wide crackdown on unfair floor clauses in mortgage contracts led to Banco Mare Nostrum, Abanca, BBK, Cajasur and Sabadell repaying customers over EUR 580 million.

Seven Indonesian banks were defrauded of a total of IDR 836 billion, when a businessman applied for working capital loans for his company using fake purchase order documentation. The banks were Bank Mandiri, Qatar National Bank, United Overseas Bank, HSBC, Bank Negara Indonesia, Commonwealth Bank and Muamalat.

Asset Management

ORX News recorded six asset management loss events this quarter, with an average loss amount of USD 24.6 million. The largest loss was suffered by Pacific Investment Company in the USA. It paid USD 81 million to its former director Bill Gross, who claimed that he had been wrongly removed from the company in a coup by other executives.


The majority of our insurance loss events occurred in North America and Wester Europe, with the notable exception of an event in Kora involving Samsung's life insurance arm. Samsung paid billions of Korean won in a dispute with regulators over a clause in its life insurance contracts that paid enhanced benefits for death from suicide

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ORX News quarterly newsletter Q1 2017

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