Operational Risk Narratives

Overview

This skill produces structured operational risk event narratives and analyses for financial institutions. It covers loss event documentation, root cause analysis (RCA), risk and control self-assessments (RCSA), key risk indicator (KRI) analysis, scenario analysis, and operational risk capital estimation. Output aligns with Basel III/IV operational risk framework, OCC Heightened Standards, and industry taxonomies (ORX, Basel event types).

When to Use

• Documenting operational loss events for the internal loss database
• Conducting root cause analysis for material loss events
• Drafting operational risk committee reports and board summaries
• Analyzing KRI breaches and trend deterioration
• Performing RCSA facilitation and documentation
• Supporting Basel III standardized measurement approach (SMA) calculations
• Preparing operational risk scenario analysis narratives for stress testing

Required Inputs