Beyond the headlines

  • 28 October 2016

About the report

Beyond the headlines is our sixth annual report on our banking operational risk loss data. It summarises our loss database and illustrates trends in operational risk losses.

This edition of the report is based on losses recorded between 1 January 2010 and 31 December 2015.

Summary of loss data reported to ORX during the years 2010-2015

Members reported 303,766 individual loss events to the ORX global loss database in the six years from the beginning of 2010 to the end of 2015, totalling more than €215bn gross loss. Each loss event is equal to or greater than €20,000. For 2010-2015 the average gross loss reported to ORX was €708,041.

Comparing 2015 to the previous five years

The year 2015 saw more losses of a larger average value. It was also the year Members recorded some particularly large single loss events, which significantly influenced the overall total gross loss.

Our Members reported 53,348 losses, an increase of 6.5% on the average of the previous five years. The 2015 average gross loss amount is €907,147, an increase of 36% on the average of the previous five years.

These increases contributed to a total loss of €48bn, 43% higher than the average of the previous five years. Losses in 2015 per €100 of income increased 15% from the previous five-year average to €3.90.

The 10 largest losses in 2015 account for approximately half of the year’s total gross loss, which significantly skews the consequent gross loss averages.

Beyond the headlines provides data for 2010 through to the end of 2015 to enable comparison. It highlights how the reported losses have evolved, assessing the frequency and severity of losses across Business Lines, Event Types, regions, and by year. It also ranks each business line by relative risk.

Find out more

To find out more download the report. If you have any questions please get in touch with us.

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Beyond the headlines Operational risk loss data for banks submitted in 2015

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