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ABA: The American Bankers Association

Operational Risk Data Sharing Consortium

Bringing together peer institutions for important external loss data sharing and benchmarking. Bank members only.

This banker-driven group interacts throughout the year to define, review and improve best practices in operational loss data collection and reporting. Members have access to a comprehensive database that is updated quarterly.

The Consortium membership consists primarily of large U.S. regional banks. The purposes of sharing operational loss data are to assist in benchmarking by business line and loss event type among peer institutions, and to assist in complying with the regulatory requirement of gathering external loss event data as part of the operational risk management framework.

About the Consortium

  • Established in 2003 
  • Launched the ABA Consortium Portal in August 2012 
    • Layered security and multi-factor authentication 
    • Customized data upload and download facility for secure data submission 
    • Peer group comparisons
    • Customized data download facility for downloading external loss events data 
  • Current Members: Leading and large-regional U.S. banks with assets ranging from $20 billion to $300+ billion
  • Total assets represented by ABA Consortium members: over $3.2 trillion
  • Historical database of reported losses $10,000 or more
  • Total number of events: 200,000 
  • Total combined losses of $34 billion
  • Average gross losses per event: $176K  
  • 2,000+ events with $1 million or more in losses, and about 350 events with $10 million or more in losses

Member Benefits

  • Pooled loss event data for operational risk modeling
  • Establishing consistency in loss event classifications and data reporting methodologies
  • Summary and benchmarking reports for easy peer-to-peer comparisons
  • Cross-firm comparisons of severity/frequency distributions 
  • Networking with peer banks through regular conference calls and an annual meeting 
  • Associated working groups: Reporting Subgroup and Analytics Group provide forums for sharing ideas and lessons learned

Database and Benchmarking Reports Uses

  • CCAR/DFA stress testing and  AMA models
  • Input for scenario analysis, which in turn, provides input to capital model
  • Validation and testing of assumptions in capital model
  • External data can be used to model a separate severity distribution. The internal and external severity distributions may be combined using a weighting scheme.
  • Certain statistics (not entire distribution) of severity are extracted from the database and used as input in internal model.
  • Frequency data are used as input in internal model.
  • Benchmarking metrics are used in quarterly reporting to senior management. 

Interested in participating in this program? Email [email protected].