Article 321
Qualitative standards
The qualitative standards referred to in Article 312(2) are the following:
(a)
an institution's internal operational risk measurement system shall be closely integrated into its day-to-day risk management processes;
(b)
an institution shall have an independent risk management function for operational risk;
(c)
an institution shall have in place regular reporting of operational risk exposures and loss experience and shall have in place procedures for taking appropriate corrective action;
(d)
an institution's risk management system shall be well documented. An institution shall have in place routines for ensuring compliance and policies for the treatment of non-compliance;
(e)
an institution shall subject its operational risk management processes and measurement systems to regular reviews performed by internal or external auditors;
(f)
an institution's internal validation processes shall operate in a sound and effective manner;
(g)
data flows and processes associated with an institution's risk measurement system shall be transparent and accessible.