zentralerkreditaussch uss - Verband deutscher Pfandbriefbanken

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Category Term Definition
OR features Cause The underlying reason(s) giving rise to an OR event.
Effect
(= Impact)
Foregone (future)
revenue
The financial or non-financial result of an OR event..
Income that would have been earned in the absence of an
OR event.
(= Opportunity
Costs)
Impact
Loss
(= LGE)
See → Effect
The negative → effect on the Bank`s physical, financial or
immaterial assets by an OR event or a series of OR events.
This does not include → foregone (future) revenues nor any
investments for preventive action, quality improvement, automation.
− Direct loss
− Indirect loss
− Gross loss
A → loss which is directly visible and attributable in P&L
accounts.
→ Opportunity costs caused by an OR event and → losses
which are secondary to → direct losses..
.
The →loss irrespective of any recoveries (e.g. insurance, cost
sharing agreement).
− Net loss
Loss given
event (LGE)
Near miss
Opportunity
Costs
Residual Risk
The → loss after taking into account recoveries / reimbursements
etc.
See → loss.
An OR event that potentially could but actually did not
result in a → loss.
See → Foregone (future) revenue
The remaining OR that a firm cannot further reduce
through (qualitative and quantitative) OR management
activities without dropping business activities.
Risk profile
The level of OR across a firm’s → business line and/or risk
categories.
. . .