| Detailed loss event type classification |
| Event-type category (Level 1) | Definition | Categories (Level 2) | Activity examples (Level 3) |
| Internal Fraud. | Losses due to acts of a type intended to defraud, misappropriate property or circumvent regulations, the law or company policy, excluding diversity/ discrimination events, which involves at least one internal party. | Unauthorized Activity | Transactions not reported (intentional). |
| Trans type unauthorized (with monetary loss). |
| Mismarking of position (intentional). |
| Theft and Fraud | Fraud / credit fraud / worthless deposits. |
| Theft / extortion / embezzlement / robbery. |
| Misappropriation of assets. |
| Malicious destruction of assets. |
| Forgery. |
| Check kiting. |
| Smuggling. |
| Account take-over / impersonation. |
| Tax non-compliance / evasion (willful). |
| Bribes / kickbacks. |
| Insider trading (not on firm's account). |
| External Fraud. | Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law by a third party. | Theft and Fraud | Theft/ Robbery. |
| Forgery. |
| Check kiting. |
| Systems Security | Hacking damage. |
| Theft of information (with monetary loss). |
| Employment Practices and Workplace Safety. | Losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity / discrimination events. | Employee Relations | Compensation, benefit, termination issues. |
| Organized labor activity. |
| Safe Environment | General liability (slips and falls, etc.). |
| Employee health & safety rules events. |
| Workers compensation. |
| Diversity and Discrimination | All discrimination types. |
| Clients, Products and Business Practices. | Losses arising from an unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature or design of a product. | Suitability, Disclosure, and Fiduciary | Fiduciary breaches / guideline violations. |
| Suitability / disclosure issues (know-your-customer, etc.). |
| Retail consumer disclosure violations. |
| Breach of privacy. |
| Aggressive sales. |
| Account churning. |
| Misuse of confidential information. |
| Lender Liability. |
| Improper Business or Market Practices | Antitrust. |
| Improper trade / market practices. |
| Market manipulation. |
| Insider trading (on firm's account). |
| Unlicensed activity. |
| Money laundering. |
| Product Flaws | Product defects (unauthorized, etc.). |
| Model Error. |
| Selection, Sponsorship, and Exposure | Failure to investigate client per guidelines. |
| Exceeding client exposure limits. |
| Advisory Activity | Disputes over performance of advisory activities. |
| Damage to Physical Assets. | Losses arising from loss or damage to physical assets from natural disaster or other events. | Disasters and Other Events | Natural disaster losses. |
| Human losses from external sources (terrorism, vandalism). |
| Business Disruption and System Failures. | Losses arising from disruption of business or system failures. | Systems | Hardware. |
| Software. |
| Telecommunications. |
| Utility outage / disruptions. |
| Execution, Delivery, and Process Management. | Losses from failed transaction processing or process management, from relations with trade counterparties and vendors. | Transaction Capture, Execution, and Maintenance | Miscommunication. |
| Data entry, maintenance or loading error. |
| Missed deadline or responsibility. |
| Model / system miss-operation. |
| Accounting error / entity attribution error. |
| Other task miss-performance. |
| Delivery failure. |
| Collateral management failure. |
| Reference Data Maintenance. |
| Monitoring and Reporting | Failed mandatory reporting obligation. |
| Inaccurate external report (loss incurred). |
| Customer Intake and Documentation | Client permissions / disclaimers missing. |
| Legal documents missing / incomplete. |
| Customer/Client Account Management | Unapproved access given to accounts. |
| Incorrect client records (loss incurred). |
| Negligent loss or damage of client assets. |
| Trade Counterparties | Non-client counterparty miss-performance. |
| Miscellaneous non-client counterparty disputes. |
| Vendors and Suppliers | Outsourcing. |
| Vendor disputes. |
