📊 The Basel Committee introduced a new methodology for calculating operational risk capital requirements but did not update its risk taxonomy from the Basel 2 framework, which is also used in the CRR2 framework.
The previous risk taxonomy lacked granularity in classification hence it created gaps, especially in capturing new risktypes and complex events.
🔄 In response, EBA has developed an updated risk taxonomy in continuity with the framework of the CRR2, with the aim of maintaining alignment with the current practice of most institutions that aligns with international standards, and a methodology for classifying loss events in line with Article 317(9) of Regulation (EU) 575/2013.
Discover our analysis and the complete level 1 and level 2 classification 👉 here