Financial and
ESG report 2020

Operational risk

The capital requirements for operational risk are calculated using the standardized approach (CRR Article 317-320). They represented about 9.4% of the total amount of capital requirements as at 31 December 2020 (Art. 446).

Losses stemming from operational risk events

The below table presents operational risk events registered in the operational risk database in 2020. Operational risk events related to credit risk, which are treated as credit risk events for the purpose of calculating credit risk capital requirements, are not included in the table.

Table 39. Operational risk events (the amount of losses), divided by events categories and kind of loss (in PLN million)

Event category Net loss Gross loss
Employment practices and workplace safety 10.0 10
Clients, products and business practices 2.4 2.4
Internal fraud 0.8 0.8
Damage to physical assets 0.0 0.4
External fraud 0.0 0.1
Execution,delivery and process management 0.1 0.1
TOTAL 13.3 13.8


Operational risk management system requires identification of a causes of an events and implementation of decisions or actions to reduce frequency and financial impact of events. It is completed using change of processes, strengthening of internal controls, adjustments of documentation and procedures and dedicated trainings.

In 2020 Bank Millennium Group reported no material operational risk events. i.e. those for which gross loss exceeds 10% of capital requirements for operational risk.

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