Operational Risk – Risk Profile

Operational Risk Losses by Event Type (Profit and Loss view)

in € m.

2014

20131

1

Changed 2013 loss figures due to subsequent booking of losses and reclassification.

Clients, Products and Business Practices

1,742

2,438

Internal Fraud

498

913

External Fraud

20

(69)

Execution, Delivery and Process Management

72

68

Others

61

32

Group

2,393

3,382

Profit and loss based operational losses decreased by € 1.0 billion or 29 % compared to year-end 2013. The decrease was predominantly driven by the event types “Clients, Products and Business Practices” and “Internal Fraud” (see section “Definition of Operational Risk – Fraud Risk”), due to settlements reached and decreased litigation reserves for unsettled cases. The increase in the event type “External Fraud” is caused by a gain from a direct recovery in 2013. The event type “Execution, Delivery and Process Management” is stable, other event types increased slightly.

Operational Losses by Event Type occurred in the period 2010-2014 (2009-2013)(1)
Operational Losses by Event Type occurred in the period 2010-2014 (2009-2013) (pie chart)

The above left pie chart “Frequency of Operational Losses” summarizes operational risk events which occurred in the five-year period 2010-2014, based on the period in which a loss was first recognized for that event. For example, for a loss event that was first recognized in 2002 with an additional profit/loss event recognized in 2014, the frequency chart would not include the loss event, but the loss distribution chart would include the profit/loss recognized in the respective period.

Frequencies are dominated by the event type “External Fraud” with a frequency of 53 % of all observed loss events. The event types “Execution, Delivery and Process Management” contribute 25 % of the events and “Clients, Product and Business Practices” 20 %. Others are stable at 2 %. The event type “Internal Fraud” has a low frequency, resulting in 0.2 % of the loss events in the period 2010-2014. This is unchanged compared to 2009-2013.

The above right pie chart “Distribution of Operational Losses” summarizes operational risk loss postings recognized in the profit/loss over the five-year period 2010-2014. The event type “Clients, Product and Business Practices” dominates the operational loss distribution with a share of 64 % and is determined by outflows related to litigation, investigations and enforcement actions. “Internal Fraud” has the second highest share (21 %) which is related to regulatory events we have experienced in recent years. Finally, the event types “External Fraud” (9 %) and “Execution, Delivery and Process Management” (4 %) can be considered minor, compared to other event types.


Key figures comparison

Compare key figures of the past years. more