Beyond the Headlines: Banking annual public loss report 2017

  • 17 November 2017

This is the seventh annual report on the ORX banking operational risk loss database, summarising our database and illustrating trends in operational risk losses within the banking industry.

ORX Global Banking Service

Established in 2002, the ORX global banking service was created to provide the banking industry with a platform for data sharing.

By 2017, we had grown to 85 banking Members from around the globe while also offering insurance, news and scenarios services, making ORX the largest operational risk association in the financial services sector.

About the report

The report is based on loss and income data submitted from January 2011-December 2016. For this period, a total of 347,498 loss events totalling €200bn in gross loss have been submitted by Banking Service members.

For the first time in 2017 we also produced a similar report on our insurance data. You can find out more about the insurance report here.

Trends

The average size of a loss event in 2016 was €353,373 which is less than a third of the average loss size in 2011 of €1,144,362. As a proportion of income this equates to €1.56 per €100 in 2016 compared to €6.21 per €100 in 2011.

The frequency of loss events submitted per year remains relatively stable with around 60,000 events reported in 2016.

Loss in North America and Western Europe dominates the total loss with 39% originating in North America and 49% originating in Western Europe (page 13). Though this is partly a reflection of the ORX membership, it is also indicative of which regions are most exposed to operational risk.

Figure 1. Global distribution of frequency and severity of losses reported between 2011 and 2016.
Global distribution of frequency and severity of losses reported between 2011 and 2016

Managing risk together

In addition to the anonymous sharing of loss data, becoming a member of the ORX Banking Service enables you to work with your peers and gain access to a leading risk management resource.

Benefits include:

  • Access to a global network of operational risk professionals
  • Access to a range of online resources – including benchmarking against your industry peers
  • The opportunity to participate in leading-edge operational risk research and the development of risk management pactices and tools
  • Access to a range of other information sharing services, including Capital Benchmarking
  • Free access to ORX forums

Find out more about joining ORX.

Download Beyond the headlines

Beyond the headlines - Public report on banks' operational risk loss data 2017

Operational risk loss data for banks submitted between January 2011-December 2016

Contact us

If you'd like to know more about this report, or other reports from ORX get in touch.

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