The rule in plain words
(-) negative loss adjustment amounts cannot be more than zero.
EBA checks it for seven columns: internal fraud, external fraud, employment practices and workplace safety, clients, products & business practices, damage to physical assets, business disruption and system failures, and execution, delivery & process management. That makes seven checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
EXTERNAL FRAUD: of which: (-) negative loss adjustment amounts <= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark C 17.01 as reported.
- 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Operational risk: losses and recoveries by business lines and event types in the last year (C 17.01.a)
Row
- 0946of which: (-) negative loss adjustment amounts
Columns
- 0010INTERNAL FRAUD
- 0020EXTERNAL FRAUD
- 0030EMPLOYMENT PRACTICES AND WORKPLACE SAFETY
- 0040CLIENTS, PRODUCTS & BUSINESS PRACTICES
- 0050DAMAGE TO PHYSICAL ASSETS
- 0060BUSINESS DISRUPTION AND SYSTEM FAILURES
- 0070EXECUTION, DELIVERY & PROCESS MANAGEMENT
A worked example
The first of its checks, with simple numbers.
(-) negative loss adjustment amounts, external fraud can then be at most 0.
A file that reports 0 passes. One that reports 100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{C_17.01.a,r0946,c0020,} <= 0The next five:
{C_17.01.a,r0946,c0070,} <= 0{C_17.01.a,r0946,c0060,} <= 0{C_17.01.a,r0946,c0050,} <= 0{C_17.01.a,r0946,c0030,} <= 0{C_17.01.a,r0946,c0010,} <= 0And 1 more, the same formula for the other cells it covers.
Other rules on C 17.01.a
- None of the 427 values it checks in operational risk can be negative (v90222_s)Warning
- Total business lines: maximum single loss cannot be more than sum of the five largest losses (v8725_m)Warning
- Corporate items [CI]: maximum single loss cannot be more than sum of the five largest losses (v8724_m)Warning
- Asset management [AM]: maximum single loss cannot be more than sum of the five largest losses (v8723_m)Warning
- Agency services [as]: maximum single loss cannot be more than sum of the five largest losses (v8722_m)Warning
- Payment and settlement [PS]: maximum single loss cannot be more than sum of the five largest losses (v8721_m)Warning
- Retail banking [RB]: maximum single loss cannot be more than sum of the five largest losses (v8720_m)Warning
- Commercial banking [CB]: maximum single loss cannot be more than sum of the five largest losses (v8719_m)Warning
Every COREP own funds rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.