The rule in plain words
Historical Losses for at least 5 periods must be reported when the Business Indicator amount is greater than £0.88bn
What to do if your return fails it
- 01Open the tables below and find the cells the rule reads.
- 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
- 03It runs only when your filing indicators mark OF16.00.01.04 and OF16.00.01.05 as reported.
- 04This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Operational risk: part 3 - business indicator component (OPR) (OF16.00.01.03)
Row
- R0020Bucket Amount
Column
- C0010Amount
Operational risk: part 4 - business indicator and subcomponents (OPR) (OF16.00.01.04)
Row
- R0010Business Indicator (BI)
Column
- C0050Component value
Operational risk: part 5 - historical losses (OPR) (OF16.00.01.05)
Rows
- R0010Total amount of operational losses net of recoveries (no exclusions)
- R0020Total number of operational risk losses
- R0030Total amount of excluded operational risk losses
- R0040Total number of exclusions
- R0050Total amount of operational losses net of recoveries and net of excluded losses
- R0060Total amount of operational losses net of recoveries (no exclusions)
- R0070Total number of operational risk losses
- R0080Total amount of excluded operational risk losses
- R0090Total number of exclusions
- R0100Total amount of operational losses net of recoveries and net of excluded losses
Columns
- C0010T-9
- C0020T-8
- C0030T-7
- C0040T-6
- C0050T-5
- C0060T-4
- C0070T-3
- C0080T-2
- C0090T-1
- C0100T
- C0110Ten-year average
Which returns it applies to
Line4 Check runs it on the own funds (PRA001) and own funds for SDDTs (PRA116) returns on Bank of England banking taxonomy 4.1.1. The Bank of England applies it to own funds for SDDTs (PRA116) and own funds (PRA001) returns, as a blocking check.
The Bank’s own words and formula
The plain words above are the Bank of England’s own, word for word, from its list of validations.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
if {t: OF16.00.01.04, r: 0010, c: 0050} > 880000000 then count({t: OF16.00.01.05, r: 0010, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0020, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0030, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0040, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0050, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0060, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0070, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0080, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0090, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: OF16.00.01.05, r: 0100, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 else true()The same code in the own funds for SDDTs (PRA116) return: another check
The Bank of England uses boe_b0918 for a different check in the own funds for SDDTs (PRA116) return. There it is a blocking check on operational risk: part 5 - historical losses (OPR) (SC16.00.01.05), operational risk: part 3 - business indicator component (OPR) (SC16.00.01.03) and operational risk: part 4 - business indicator and subcomponents (OPR) (SC16.00.01.04).
Historical Losses for at least 5 periods must be reported when the Business Indicator amount is greater than £0.88bn
Operational risk: part 3 - business indicator component (OPR) (SC16.00.01.03)
Row
- R0020Bucket Amount
Column
- C0010Amount
Operational risk: part 4 - business indicator and subcomponents (OPR) (SC16.00.01.04)
Row
- R0010Business Indicator (BI)
Column
- C0050Component value
Operational risk: part 5 - historical losses (OPR) (SC16.00.01.05)
Rows
- R0010Total amount of operational losses net of recoveries (no exclusions)
- R0020Total number of operational risk losses
- R0030Total amount of excluded operational risk losses
- R0040Total number of exclusions
- R0050Total amount of operational losses net of recoveries and net of excluded losses
- R0060Total amount of operational losses net of recoveries (no exclusions)
- R0070Total number of operational risk losses
- R0080Total amount of excluded operational risk losses
- R0090Total number of exclusions
- R0100Total amount of operational losses net of recoveries and net of excluded losses
Columns
- C0010T-9
- C0020T-8
- C0030T-7
- C0040T-6
- C0050T-5
- C0060T-4
- C0070T-3
- C0080T-2
- C0090T-1
- C0100T
- C0110Ten-year average
The plain words above are the Bank of England’s own, word for word, from its list of validations.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
if {t: SC16.00.01.04, r: 0010, c: 0050} > 880*1000*1000 then count({t: SC16.00.01.05, r: 0010, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0020, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0030, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0040, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0050, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0060, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0070, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0080, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0090, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 or count({t: SC16.00.01.05, r: 0100, c: 0010; 0020; 0030; 0040; 0050; 0060; 0070; 0080; 0090; 0100; 0110}) >=5 else true()Other rules on Operational risk: part 5 - historical losses (OPR) (OF16.00.01.05)
- Operational risk: part 5 - historical losses (OPR): a check on its values (boe_b0918_1)Blocking
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0813)
- The ten-year average Total number of exclusions takes into account the sum of the annual amounts over the previous years from T to T-9 (boe_b0812)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0811)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0810)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0809)
- Operational risk: part 5 - historical losses (OPR): a conditional check (boe_b0808)
- The ten-year average Total number of exclusions takes into account the sum of the annual amounts over the previous years from T to T-9 (boe_b0807)
Every PRA banking rule on OF16.00.01.05
Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.