Operational Risk Losses by Event Type (Profit and Loss view) |
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in € m. |
2014 |
20131 |
||
|
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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 |
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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)
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.
