This chapter presents the principles of reporting and the types of content that are common in risk reporting in financial institutions. It explores the main challenges of reporting on non‐quantitative data, presents options to address risk aggregation and gives examples of conduct reporting. Finally, it proposes solutions to deal with the heavy tail nature of operational losses while turning data into reporting stories.
Except for regulatory reporting, which is a mandatory requirement, firms should consider a few golden rules for efficient reporting:
These rules are variations of the “so what?” approach to reporting, ensuring that everything reported has a purpose.
Reporting packs in operational risk commonly include the following: