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Capital Requirements Regulation (CRR)
Article 324

Article 324 — Loss event type classification

The loss events types referred to in point (b) of Article 322(3) are the following:

Table 3
Event-Type CategoryDefinition
Internal fraudLosses due to acts of a type intended to defraud, misappropriate property or circumvent regulations, the law or company policy, excluding diversity/discrimination events, which involves at least one internal party
External fraudLosses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third party
Employment Practices and Workplace SafetyLosses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity/discrimination events
Clients, Products & Business PracticesLosses arising from an unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature or design of a product
Damage to Physical AssetsLosses arising from loss or damage to physical assets from natural disaster or other events
Business disruption and system failuresLosses arising from disruption of business or system failures
Execution, Delivery & Process ManagementLosses from failed transaction processing or process management, from relations with trade counterparties and vendors