Risk Event Inventory
Step 1 — Risk Identification
Central Risk Event
Risk Category
Business Line
Inherent Risk Rating
Residual Risk Rating
Risk Owner
Review Date
Regulatory Framework
Risk Appetite
Risk Description
Context & Background
Estimated Financial Impact — Low (USD)
Estimated Financial Impact — High / Tail (USD)
Basel III Operational Risk Event Category
BIS / Basel Committee on Banking Supervision
Select the applicable Basel II / III Level 1 operational risk event type. This classification drives regulatory capital treatment, loss data reporting (ORX, internal), and RCSA linkage. One primary category should be selected; note secondary categories in the description field.
Basel Category Notes / Secondary Classification
Step 2 — Risk Drivers (Threats)
Identify the causal factors that could trigger the central risk event. Drivers sit on the left side of the bow-tie. Each should be discrete, actionable, and assessable independently.
Step 3 — Key Risk Indicators (KRIs)
Design measurable, forward-looking indicators that provide early warning for each risk driver. A good KRI is quantifiable, has defined escalation thresholds, and is owned by a named individual.
Step 4 — Event Impacts (Consequences)
Identify downstream consequences if the central event occurs. Impacts sit on the right side of the bow-tie. Document first and second-order effects separately.
Step 5 — Key Control Indicators (KCIs)
Design post-event metrics that measure the scale of each impact and the effectiveness of recovery actions. KCIs are backward-looking monitors used during and after an event.
Step 6 — Controls & Mitigations
Preventive Controls
Left-side — reduce likelihood
Recovery Mitigations
Right-side — reduce impact
Step 7 — Bow-Tie Risk Map
Risk Driver
KRI — Early Warning
Preventive Control
Central Risk Event
Event Impact
KCI — Recovery Metric
Recovery Mitigation
Step 8 — Risk Register & Summary
Analysis Completeness
Driver Risk Heat MapLikelihood × Severity
Driver RegisterLeft-side
| Driver | Category | Likelihood | Severity | Risk Score | KRIs Mapped | Controls Mapped | Coverage |
|---|
Impact RegisterRight-side
| Impact | Category | Severity | Time to Manifest | KCIs Mapped | Mitigations Mapped | Coverage |
|---|
Audit & Attestation
Prepared by
Reviewed by (1st Line)
Approved by (CRO / MD)
Next Review Date
Document Version
Status