Term
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Business line
| A combination of similar business activities within an institution.
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Business line mapping | The representation of an institution´s processes in a standardised scheme of business lines.
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Control environment
| The overall attitude, awareness and actions of directors and management regarding internal controls and their importance in the entity (encompassing the management style, and corporate culture and values shared by all employees), which provides the background against which the various other controls are operated. The control environment can often be referred to also as the Control Culture. (UK Statement of Auditing Standards (slightly paraphrased)).
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Controls (including internal controls)
| A measure that reduces the probability and/or the severity of an event.
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Operational risk committee | A group of staff members (including management) in a financial institution, who discuss the operational risk issues on a inter-business level and monitor the progress of the implementation of an operational risk framework and advise or decide on activities to be performed.
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Operational risk controlling
| The set of activities, which makes the operational risk transparent to allow (senior) management to make decisions and the independent monitoring of the adequacy and the completion of the consequent actions.
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Operational risk control
| An oversight function and activity to evaluate the level of operational risk in an organisation.
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Operational risk framework
| A set of activities, which build an operational risk management cycle and the supporting tasks for the creation and maintenance of this management cycle.
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Operational risk policy
| An internal document reflecting the internal and regulatory requirements for the implementation of a sound control environment (commonly called operational risk management framework) within the financial institution.
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Operational risk guidelines
| An internal document containing the implementation of the operational risk policy in the individual organisational unit within the financial institution.
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Operational risk management
| The sets of activities to take, limit, mitigate and transfer operational risk, to which the financial institution is exposed.
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Standard business line
| A grouping of business activities into prescribed categories defined by the regulators.
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