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Validation and visibility

A new loss event starts as a Draft and is submitted to Risk Management. The entity’s own Entity Risk Manager validates it into the loss data set, rejects it as not an operational risk event, or returns it for more information. Only a validated event travels up to the parent, and a sensitive event is seen only along the reporting line.

Who may do it: the Entity Risk Manager of the entity where the event was recorded. See Roles and permissions.

Loss event status and visibilityA new loss event starts as a Draft and is submitted to Risk Management. The entity's own Entity Risk Manager reviews it, then validates it into the loss data set, rejects it as not an operational risk event, or returns it for more information. The validator is stamped and cannot be changed. A validated event is reported up for the parent to read, and is later closed. A rejected event stays in the entity with its reason. Sensitive events are seen only along the reporting line.SUBMITVALIDATEREJECTRETURNCLOSEDraftLE-2026-0001reporter stampedUnder reviewsent to Risk ManagementEntity Risk Manager checksValidatedin the loss data setvalidator stamped, fixedRejectedwith the reasonstays in the entityClosedhandling finishedstays reported upPARENT ENTITYReads Validated andClosed events onlySENSITIVE EVENTSSeen only along thereporting lineLEGENDNew eventValidatedOther statusReject / returnClose
Draft → Submitted to Risk Management → Under review → Validated, Rejected or Returned, by the entity's own Entity Risk Manager. Only a validated or closed event is reported up.

Validating a loss event

Section titled “Validating a loss event”
  1. Open the event submitted to Risk Management. While you check it, it is Under review by Risk Management.
  2. Check its dates, cause, Basel event type, linked risk, amounts and the evidence label of the amounts.
  3. Validate it into the loss data set, reject it as not an operational risk event with the reason, or return it to the reporter for more information.
  4. Save. When you validate or reject it, the system stamps you as the validator, with the date.

What happens next

Section titled “What happens next”
StatusWhat it means
DraftBeing completed by the first line. Seen only inside the entity.
Submitted to Risk ManagementComplete, and sent for validation.
Under review by Risk ManagementThe Entity Risk Manager is checking it.
Returned for more informationSent back to the reporter to complete, then submitted again.
Validated — in the loss data setAccepted by the entity’s Entity Risk Manager, with the validator stamped. Reported up, so the parent can now read it.
Rejected — not an operational risk eventNot accepted, with the reason. Left out of the loss data set and the monthly loss report, and not reported up.
ClosedHandling of the event is finished. It stays reported up.

Sensitive events

Section titled “Sensitive events”

An event marked sensitive is seen only along the reporting line, never sideways. The Approver sees it at once; executives and the RMC see it once it reaches them in the reporting line; the platform administrator does not see it. See Roles and permissions.

What the system does or refuses

Section titled “What the system does or refuses”
  • Only the entity validates. A user at a parent entity cannot validate or reject a subsidiary’s loss event. See Subsidiary-Independence.
  • No validation without evidence. An event cannot be validated while the evidence label of its amounts is unknown.
  • The validator is stamped and cannot be changed. See Who-filed is stamped.
  • The parent sees validated and closed events only. See Reported-Then-Visible.
Section titled “Related”