Materiality tiers
Every loss event has a materiality tier. The system computes it from the event’s latest position against thresholds the group sets, and routes the event to the people that tier calls for. Nobody chooses a tier.
Who uses it: the Entity Risk Manager and executives. The thresholds are set at the group root. See Roles and permissions.
How the tier is set
Section titled “How the tier is set”- Thresholds are the group’s. The group root sets the materiality thresholds once, and they apply to every entity beneath it, so tiers mean the same thing across the group.
- The tier is computed from the event’s latest position against those thresholds. See Computed, never typed.
Who each tier is routed to
Section titled “Who each tier is routed to”| Tier | Routed to |
|---|---|
| Tier 1 | The Risk Champion |
| Tier 2 | The route the group sets |
| Tier 3 | The RMC and the board |
When a restatement changes the tier
Section titled “When a restatement changes the tier”A recovery or revaluation is added to the valuation history. If the new position crosses a threshold:
- The system recomputes the tier and routes the event to the new tier’s recipients.
- The system flags a threshold review, which lands in the action register with an owner and a due date.
- Both the earlier and the new tier stay in the event’s history.
What the system does or refuses
Section titled “What the system does or refuses”- There is no field to choose a tier.
- The tier follows the latest position in the valuation history.
- Thresholds change only at the group root. An entity cannot set its own thresholds.