In 2014 the CRO Forum members have developed a recommendation for minimum data standards for reporting loss events to an operational risk (OpRisk) loss data consortium. Currently, different providers for loss database services use their own standards. The CRO Forum has an interest of compatibility of operational loss data at the level outlined is this document, in order to allow for a potential industry wide view on operational risk events. The purpose of the minimum standards is to ensure compatibility between different loss databases with different database providers. Different providers can create additional standards and guidelines, but are asked to adhere to the standards described here to ensure that the data is mutually exchangeable.
It is important to note that the data standards are minimum standards only. This document does not aim to provide risk management principles or best practices for the loss data collection process in an insurance company. The set of data standards comprises two types of fields. The first type are the fields that are essential for using the data for quantitative analysis (“quantitative data fields”), e.g. backtesting of OpRisk capital, benchmarking. The second type are elements that allow the data to be used for qualitative risk management purposes (“qualitative data fields”), e.g. internal control system effectiveness. Both types are described in this document.
In developing these standards, the CRO Forum working group has built on existing Basel II standards and has benefit from discussions with loss data consortia ORIC and ORX.