Operational loss event data collection, analysis and reporting is the backbone of a sound framework for the management of operational risk. Data on actual events provides a tangible source of information on the probability and impact of operational risks, helping to reduce the subjectivity of operational risk assessments and reports. Data also provides organizations with the opportunity to learn from past events, where effective hindsight can promote more accurate foresight.

This guide explains how to design and implement processes for the collection and use of internal operational loss event data and for the use of external loss event data, where appropriate. In so doing the guidance combines and updates the separate Sound Practice Guidance Papers that were previously issued by the IOR on external and internal loss event data.