Prospectus - Notowania

Section 4 – Operational risk
Qualitative Information
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>> Condensed Consolidated Financial Statements
Part E) – Information on risks and related risk management policies
A. General aspects, operational processes and methods for measuring
operational risk
Operational risk
Operational risk is the risk of loss due to errors, infringements, interruptions, damages caused by internal processes or
personnel or systems or caused by external events. This definition includes legal and compliance risks, but excludes strategic
and reputational risk.
For example, losses arising from the following can be defined as operational: internal or external fraud, employment practices
and workplace safety, clients claims, products distribution, fines and penalties due to regulation breaches, damage to the
company’s physical assets, business disruption and system failures, process management.
Group operational risk framework
UniCredit Group sets the operational risk management framework as a combination of policies and procedures for controlling,
measuring and mitigating the operational risk of the Group and controlled entities.
The operational risk policies, applying to all Group entities, are common principles defining the roles of the company bodies,
the operational risk management function as well as the relationship with other functions involved in operational risk
monitoring and management.
Parent company coordinates the Group entities according to the internal regulation and the Group operational risk control
rulebook. Specific risk committees (Risk Committee, ALCO, Operational Risk Committee) are set up to monitor risk exposure
and mitigating actions, to approve measurement and control methods.
The methodology for data classification and completeness, scenario analysis, risk indicators, reporting and capital at risk
measurement is set by Parent company Operational Risk Management (ORM) function and applies to all Group entities. A
key element of the risk control framework is the operational risk management application, allowing the collection of the data
required for operational risk control and capital measurement.
In March 2008, the UniCredit Group received authorization to use the Advanced Measurement Approach (AMA) model for
calculating operational risk capital. The use of this method will in time be rolled out to the main entities of the Group.