1. Operational Risk Policy

2. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines. Determine sources of external loss data. Identify process of inferring external loss data. Classification of loss events. Consolidation of loss events. Reporting procedure for loss events.

3. Mapping Business Events Business units Business lines Activity groups

4. Investment Banking Unit

5. Commercial Banking Unit

6. Other Business Units

7. Audit Policy of Operational Risk Management Fixing audit bench standards. Recognition of high loss events. Suggestive measures of risk mitigation. Strategies for functional departments. Adequacy of risk assessment. Compliance procedures for audit. Review of internal audit systems.

8. Technology Policy Procurement of systems Development of software Analysis procedures for operational risk Data base management Estimation of capital charges for technology investment Compilation of technology profiles

9. Functional Policy Identification of operational loss events –Products –Processes –Systems Development of reporting formats –Data collection –Department reports –Events reports

10. Functional Policy Operational risk management committee Business line Department policy Circle office policy Bank area policy Field level policy

11. Circle Office Policy Recognition of operational loss Measurement procedures Review of operational loss data Mitigation procedures Timely data transfer to head office

12. Branch Office Policy Identification of operational loss events. Preparation of operational loss reports. Timely transfer of data to circle office. Timely transfer to operational risk management committee.