The document summarizes an operational risk committee meeting at a bank. It discusses follow ups on excessive transaction savings accounts and money transfer discounts. It also reviews retail banking risk factors, identifying the top 8 factors that account for 80% of annual impact. These include issues like incorrect daily balances, waived money transfer fees, and inventory control of prepaid items. Finally, it measures and analyzes the overall retail banking risks, finding most are recurring operational errors and ineffective controls totaling over 75% of the annual impact.

1. BANK
Operational Risk Committee
MONTH 20XX

2. AGENDA
‣ Follow up
‣ Excessive Transaction on Savings Accounts (Reg D).
‣ Envios de Dinero Bancomer Discount Transactions
‣ Risk Factors Retail Banking.
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3. Follow up
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4. Excessive Transaction on Savings Accounts
(Reg D).
Risks Involved: Operational and Reputational Department
 Monetary Penalty from Examiners Responsible:
1.-Automatic Notices in production. -Operations.
Mmm 20XX
2.-Modify Current Policy and Procedure.
‣ Define control and responsible when the 4th -Operations, Legal
excessive transaction occurs. & Compliance.
Mmm 20XX‣ Define when the account may be closed
‣ Translation Scripts and Letter
‣ Include Central Operations process -Operations,
Retail Banking &
3.-Branch Training. Compliance.
Mmm 20XX
-Audit &
4.-Follow up review by Internal Audit and Compliance.
Mmm 20XXCompliance.
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Risk, 20XX

5. Envios de Dinero Bancomer Discount
Transactions.
Risks Involved: Ineffectiveness in the control of
Department
operations
 Potential Economical Loss Responsible:
Discount Amount Transactions
$XXX
$XXX
YYY (Mmm-XX / M-mmXX)
No Account Holder
$XXX $XXX YY YYY
Discount Transactions
YY YY $XXX YY
YYY
$XXX $XXX YYY
YY YYY
$XXX
$XXX
$XXX YYY
$XXX
$XXX
YY YYY
$XXX
YYY
$- 0
mm-XX mm-XX mm-XX mm-XX mm-XX mm-XX
2.- Incorrect discount of fees to
Mexico. - Retail Banking &
‣ Each discount applied in Point of Sale Operations.
according operation strategy and policy.
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6. Waived Transaction Fees.
In the Money Transfer
• Action Needed
Each discount applied in Point of Sale has to be identified with an account holder.
NOTE: Employee with no Bank account input customer ID number.
•Why?
To identify our Customers and their consumption patterns
Marketing
Cross selling
•When?
Effective immediately
•How?
Click on the Account Holder selection button and input the account number.
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7. Retail Banking
‣ Evro Excel tool.
‣ Identification of Risk Factors
‣ Measure Risk
‣ Analysis
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8. Retail Banking
‣ Identification of Risk Factors : 40
‣ Eight Factors had the 80% of the annual impact
ANNUAL
%
DESCRIPTION OF SPECIFIC OPERATIONAL RISK FACTORS DETECTED IN THE BUSINESS UNIT IMPACT
Daily Balance process incorrect. The Cash Drawer is short resulting in a charged off. XXX 15% 15%
Money Transfer Waived Fee. Incorrect discount of fee. XXX 14% 29%
Phone cards reception, sale and shipment. Phone Cards inventory out of control resulting in the loss of phone XXX 11% 40%
Cashier Check reception, sale and shipment. Cashier Check inventory out of Control resulting in a potential fraud
with the monetary instrument. XXX 11% 51%
Deposit Check Incorrect Hold. The Teller does not follow Hold policy and procedure resulting in a loss for the XXX 10% 61%
Check Cashing Not sufficient funds Check. The Teller does not follow policy and procedure resulting in a loss for
the bank. XXX 8% 69%
Deposit Counterfeit Check. The Teller does not verify check's authenticity resulting in a loss for the bank. XXX 6% 76%
Phone cards reception, sale and shipment. Phone Cards inventory out of control resulting in accounts XXX 4% 80%
Money Transfer incorrect process. The teller types incorrectly the data of the recipient resulting in unrecovered
money. XXX 3% 83%
Deposit uncollected funds hold Check. The Check was returned because the funds have a hold, resulting in a
loss for the bank. XXX 2% 85%
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9. Retail Banking
‣ Measure Risk
‣ The total Annual Impact is around $XXX
ANNUAL IMPACT
XXX
RISK CLASS CODE
PR - PROCESSES 101 – OPERATIONAL ERRORS
PR - PROCESSES 102 – INEFFECTIVE CONTROL
EF - EXTERNAL FRAUD 202 - THEFT AND BURGLARY
XXX
EF - EXTERNAL FRAUD 203 – OTHER EXTERNAL FRAUD
BP - BUSINESS PRACTICES 601 - SUITABILITY, DISCLOSURE AND FIDUCIARY
XXX IF - INTERNAL FRAUD 301 - THEFT AND FRAUD
IT - TECHNOLOGY 401 - TECHNOLOGY AND INFRASTRUCTURE FAILURES
XXX
XXX XXX XXX
YYY YYY
RISK CLASS NAME RISK CLASS CODE ANNUAL IMPACT %
PR - PROCESSES 101 - OPERATIONAL ERRORS XXX 50.28%
102 - INEFFECTIVE CONTROL XXX 26.54%
PR - PROCESSES Total YYY 76.82%
EF - EXTERNAL FRAUD 202 - THEFT AND BURGLARY XXX 16.57%
203 - OTHER EXTERNAL FRAUD XXX 5.53%
EF - EXTERNAL FRAUD Total YYY 22.10%
BP - BUSINESS PRACTICES 601 - SUITABILITY, DISCLOSURE AND FIDUCIARY XXX 0.54%
BP - BUSINESS PRACTICES Total YYY 0.54%
IF - INTERNAL FRAUD 301 - THEFT AND FRAUD XXX 0.26%
IF - INTERNAL FRAUD Total YYY 0.26%
IT - TECHNOLOGY 401 - TECHNOLOGY AND INFRASTRUCTURE FAILURES XXX 0.28%
IT - TECHNOLOGY Total YYY 0.28%
Grand Total YYY 100.00%
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10. Retail Banking
‣ Analysis
Risk Recurring
Damage to Image
22%
Sum of ANNUAL IMPACT
Very low - Almost no Data
ZZZ Sum of RECURRING RISK
unit customers are Sum of NON-RECURRING RISK
affected.
High - Most customers ZZZ
78%
are affected.
Medium - A significant
ZZZ
number of customers is Loss Type
affected.
Data Total
Low - A reduced number ZZZ Count DIRECT LOSS RISK 37
DIRECT LOSS RISK Amount $ XXX
of customers is affected.
Count LOST PROFITS RISK 2
- 5ZZZ 1ZZZ 15ZZZ 2ZZZ 2ZZZ 3ZZZ
LOST PROFITS RISK Amount $ XXX
Count INDIRECT LOSS RISK 1
INDIRECT LOSS RISK Amount $ XXX
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