EN  . C - OPERATIONAL RISK (OPR) BANKING ACTIVITIES RELEVANT INDICATOR LOANS AND ADVANCES (IN CASE OF ASA APPLICATION) OWN FUNDS REQUIREMENT Total operational risk exposure amount YEAR-3 YEAR-2 LAST YEAR YEAR-3 YEAR-2 LAST YEAR 1. BANKING ACTIVITIES SUBJECT TO BASIC INDICATOR APPROACH (BIA) Cell linked to CA2 2. BANKING ACTIVITIES SUBJECT TO STAN DARDISED (TSA) / ALTERNATIVE STAN DARDISED (ASA) APPROACHES Cell linked to CA2 SUBJECT TO TSA: CORPORATE FINANCE (CF) TRADING AND SALES (TS) RETAIL BROKERAGE (RBr) COMMERCIAL BANKING (CB) RETAIL BANKING (RB) PAYMENT AND SETTLEMENT (PS) AGENCY SERVICES (AS)EN.   BANKING ACTIVITIES RELEVANT INDICATOR LOANS AND ADVANCES (IN CASE OF ASA APPLICATION) OWN FUNDS REQUIREMENT Total operational risk exposure amount YEAR-3 YEAR-2 LAST YEAR YEAR-3 YEAR-2 LAST YEAR ASSET MANAGEMENT (AM) SUBJECT TO ASA: COMMERCIAL BANKING (CB) RETAIL BANKING (RB) 3. BANKING ACTIVITIES SUBJECT TO ADVANCED MEASUREMENT APPROACHES AMA Cell linked to CA2EN  . BANKING ACTIVITIES AMA MEMORANDUM ITEMS TO BE REPORTED IF APPLICABLE OF WHICH: DUE TO AN ALLO CATION MECHANISM OWN FUNDS REQUIREMENT BEFORE ALLEVIATION DUE TO EXPECTED LOSS, DIVER SIFICATION AND RISK MITIGATION TECH NIQUES. ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO THE EXPECTED LOSS CAPTURED IN BUSINESS PRACTICES. ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO DIVERSIFI CATION. ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO RISK MITI GATION TECHNIQUES (INSURANCE AND OTHER RISK TRANSFER MECH ANISMS) 1. BANKING ACTIVITIES SUBJECT TO BASIC INDICATOR APPROACH (BIA) 2. BANKING ACTIVITIES SUBJECT TO STAN DARDISED (TSA) / ALTERNATIVE STAN DARDISED (ASA) APPROACHES SUBJECT TO TSA: CORPORATE FINANCE (CF) TRADING AND SALES (TS) RETAIL BROKERAGE (RBr) COMMERCIAL BANKING (CB) RETAIL BANKING (RB) PAYMENT AND SETTLEMENT (PS) AGENCY SERVICES (AS)EN.   BANKING ACTIVITIES AMA MEMORANDUM ITEMS TO BE REPORTED IF APPLICABLE OF WHICH: DUE TO AN ALLO CATION MECHANISM OWN FUNDS REQUIREMENT BEFORE ALLEVIATION DUE TO EXPECTED LOSS, DIVER SIFICATION AND RISK MITIGATION TECH NIQUES. ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO THE EXPECTED LOSS CAPTURED IN BUSINESS PRACTICES. ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO DIVERSIFI CATION. ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO RISK MITI GATION TECHNIQUES (INSURANCE AND OTHER RISK TRANSFER MECH ANISMS) ASSET MANAGEMENT (AM) SUBJECT TO ASA: COMMERCIAL BANKING (CB) RETAIL BANKING (RB) 3. BANKING ACTIVITIES SUBJECT TO ADVANCED MEASUREMENT APPROACHES AMA  4. OPERATIONAL RISK TEMPLATES. C – OPERATIONAL RISK (OPR). General Remarks 136. This template provides information on the calculation of own funds requirements in accordance with Articles 312 to 324 CRR for Operational Risk under the Basic Indicator Approach (BIA), the Standardised Approach (TSA), the Alternative Standardised Approach (ASA) and the Advanced Measurement Approaches (AMA). An institution cannot apply TSA and ASA for the business lines retail banking and commercial banking at the same time at solo level. 137. Institutions using the BIA, TSA or ASA shall calculate their own funds requirement, based on the information at financial year-end. Where audited figures are not available, institutions may use business estimates. Where audited figures are used, institutions shall report the audited figures which are expected to remain unchanged. Deviations from this ‘unchanged’ principle are possible, for instance if during that period the exceptional circumstances, such as recent acquisitions or disposals of entities or activities, are met. 138. Where an institution can justify its competent authority that – due to exceptional circumstances such as a merger or a disposal of entities or activities – using a three year average to calculating the relevant indicator would lead to a biased estimation for the own funds requirement for operational risk, the competent authority may permit the institution to modify the calculation in a way that would take into account such events. The competent authority may also on its own initiative require an institution to modify the calculation. An institution that has been in operation for less than three years may use forward looking business estimates in calculating the relevant indicator, provided that it starts using historical data as soon as those data are available.EN.   139. By columns, this template presents information, for the three most recent years, on the amount of the relevant indicator of the banking activities subject to operational risk and on the amount of loans and advances (the latter only applicable in the case of ASA). Next, information on the amount of own funds requirement for operational risk is reported. Where applicable, it must be detailed which part of that amount is due to an allocation mechanism. Regarding AMA, memorandum items are added to present a detail of the effect of the expected loss, diversification and mitigation techniques on own funds requirement for operational risk. 140. By rows, information is presented by method of calculation of the operational risk own funds requirement detailing business lines for TSA and ASA. 141. This template shall be submitted by all institutions subject to operational risk own funds requirement.. Instructions concerning specific positions  - RELEVANT INDICATOR Institutions using the relevant indicator to calculate the own funds requirement for operational risk (BIA, TSA and ASA) shall report the relevant indicator for the respective years in columns to. Moreover, in case of a combined use of different approaches as referred in Article 314 CRR, institutions shall also report, for information purposes, relevant the indicator for the activities subject to AMA. The same shall apply for all other AMA banks. Hereafter, the term ‘relevant indicator’ refers to ‘the sum of the elements’ at the end of the financial year as referred to in point 1 in Table 1 of Article 316 CRR. Where the institution has less than 3 years of data on ‘relevant indicator’ available, the available historical data (audited figures) shall be assigned by priority to the corresponding columns in the template. Where, for instance, historical data for only one year is available, those data shall be reported in column. Where it seems reasonable, the forward looking estimates shall be included in column (estimate of next year) and column (estimate of year +2). Furthermore, where there are no historical data on ‘relevant indicator’ available, the institution may use forward-looking business estimates. - LOANS AND ADVANCES (IN THE CASE OF ASA APPLICATION) These columns shall be used to report the amounts of the loans and advances, as referred to in point (b) of Article 319(1) CRR, for business lines ‘commercial banking’ and ‘retail banking’. Those amounts shall be used to calculate the alternative relevant indicator that leads to the own funds requirements corresponding to the activities subject to the alternative standard approach (point (a) of Article 319(1) CRR). For the ‘commercial banking’ business line, securities held in the non-trading book shall also be included. OWN FUND REQUIREMENT The own fund requirement shall be calculated in accordance with the approaches used and in accordance withArticles 312 to 324 CRR. The resulting amount shall be reported in column. TOTAL OPERATIONAL RISK EXPOSURE AMOUNT Article 92(4) CRR Own funds requirements in column multiplied by. EN  .  OF WHICH: DUE TO AN ALLOCATION MECHANISM Where a permission to use the AMA at consolidated level (Article 18(1) CRR) has been granted in accordance with Article 312(2) CRR, operational risk capital shall be allocated between the different entities of the group on the basis of the methodology applied by the institutions to consider diversification effects in the risk measurement system used by a EU parent credit institution and its subsidiaries or jointly by the subsidiaries of an EU parent financial holding company or an EU parent mixed financial holding company. The result of that allocation shall be reported in this column. - AMA MEMORANDUM ITEMS TO BE REPORTED IF APPLICABLE OWN FUNDS REQUIREMENT BEFORE ALLEVIATION DUE TO EXPECTED LOSS, DIVERSIFI CATION AND RISK MITIGATION TECHNIQUES The own funds requirement reported in column 090 is the one of column 070 but calculated before taking into account the alleviation effects due to expected loss, diversification and risk mitigation techniques (see below).. ALLEVIATION OF OWN FUNDS REQUIREMENTS DUE TO THE EXPECTED LOSS CAPTURED IN BUSINESS PRACTICES In column 100, the alleviation of own funds requirements due to expected loss captured in internal business practices (as referred to in point (a) of Article 322(2) CRR) shall reported.. ALLEVIATION OF OWN FUNDS REQUIREMENTS DUE TO DIVERSIFICATION The diversification effect reported in this column shall be the difference between the sum of own funds requirements calculated separately for each operational risk class (i.e. a ‘perfect dependence’ situation) and the diversified own funds requirement calculated by taking into account correlations and dependencies (i.e. assuming less than ‘perfect dependence’ between the risk classes). The ‘perfect dependence’ situation occurs in the ‘default case’, that is where the institution does not use explicit correlations structure between the risk classes, hence the AMA capital is calculated as the sum of the individual operational risk measures of the chosen risk classes. In that case, the correlation between the risk classes is assumed to be 100 % and the value in the column has to be set to zero. Conversely, where the institution calculates an explicit correlations structure between risk classes, it has to include in this column the difference between the AMA capital as stemming from the ‘default case’ and the AMA capital obtained after applying the correlations structure between the risk classes. The value reflects the ‘diversification capacity’ of the AMA model, that is the ability of the model to capture the not simultaneous occurrence of severe operational risk loss events. In column 110, the amount by which the assumed correlation structure decreases the AMA capital relative to the assumption of 100 % correlation has to be reported.. ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO RISK MITIGATION TECHNIQUES (INSURANCE AND OTHER RISK TRANSFER MECHANISMS) The impact of insurance and other risk transfer mechanisms as referred to in Article 323 CRR shall be reported in this column. Rows BANKING ACTIVITIES SUBJECT TO BASIC INDICATOR APPROACH (BIA) This row shall present the amounts corresponding to activities subject to the BIA to calculate the own funds requirement for operational risk (Articles 315 and 316 CRR).EN.   Rows BANKING ACTIVITIES SUBJECT TO STANDARISED (TSA)/ALTERNATIVE STANDARDISED (ASA) APPROACHES The own funds requirement calculated in accordance with the TSA and ASA (Articles 317, 318 and 319 CRR) shall be reported. - SUBJECT TO TSA Where the TSA is used, the relevant indicator for each respective year shall be distributed in rows to amongst the business lines referred to in Table 2 of Article 317 CRR. The mapping of activities into business lines shall follow the principles described in Article 318 CRR. - SUBJECT TO ASA Institutions using the ASA (Article 319 CRR) shall report for the respective years the relevant indicator separately for each business line in rows to and to and in rows and for business lines ‘commercial banking’ and ‘retail banking’. Rows 110 and 120 shall present the amount of the relevant indicator of activities subject to ASA, distinguishing between the amount corresponding to the business line ‘commercial banking’ and the amounts corresponding to the business line ‘retail banking’ (Article 319 CRR). There can be amounts for the rows corresponding to ‘commercial banking’ and ‘retail banking’ under the TSA (rows and ) as well as under the ASA rows and (e.g. if a subsidiary is subject to TSA whereas the parent entity is subject to ASA). BANKING ACTIVITIES SUBJECT TO ADVANCED MEASUREMENT APPROACHES AMA The relevant data for AMA institutions (Article 312(2) and Articles 321, 322 and 323 CRR) shall be reported. Where different approaches are combined as indicated in Article 314 CRR, information on relevant indicator for activities subject to AMA shall be reported. The same shall apply for all other AMA banks.