Operational risk
Operational risk is the potential loss resulting from inadequate or failed internal processes, people and systems or from external events, and includes legal risk. It also takes into account reputational risks linked to the Bank’s operations.
The CEB implemented an Operational Risk Management Policy for sound practices and effective and consistent management. The policy codifies its approach to identifying, measuring, controlling and reporting operational risks.
The Operational Risk Division manages, in close co-operation with the business lines, the implementation of the operational risk framework, following a predefined methodology for risk identification, evaluation, mitigation and targeted action plans. The collection and monitoring of operational risk incidents, including “near misses” completes the risk mapping and assessment and ensures the control framework’s effectiveness. The permanent internal control framework ensures that each Directorate’s control environment is adequate in terms of design and effectiveness. Its results are reported to the Committee for Operational Risks and Organisation.
Furthermore, through modelling the business line procedures, the Operational Risk Division maintains a comprehensive procedure and control map. The CEB has also established a Business Continuity Plan to hedge against disruptions in its activities.
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CEB Risk Management Disclosure Report 2024
In 2024 the CEB increased its lending activity, while retaining a sound risk profile and an adequate capital … Published: July 2025 Read