Definitions.

CFR · 2024-01-01 · US · Title 12

(a) Terms that are set forth in § 1240.2 and used in this subpart have the definitions assigned thereto in § 1240.2. (b) For the purposes of this subpart, the following terms are defined as follows: (i) Are generated by internal business practices to absorb highly predictable and reasonably stable operational losses, including reserves calculated consistent with GAAP; and (ii) Are available to cover expected operational losses with a high degree of certainty over a one-year horizon. (i) Internal fraud, which means the operational loss event type category that comprises operational losses resulting from an act involving at least one internal party of a type intended to defraud, misappropriate property, or circumvent regulations, the law, or company policy excluding diversity- and discrimination-type events. (ii) External fraud, which means the operational loss event type category that comprises operational losses resulting from an act by a third party of a type intended to defraud, misappropriate property, or circumvent the law. All third-party-initiated credit losses are to be treated as credit risk losses. (iii) Employment practices and workplace safety, which means the operational loss event type category that comprises operational losses resulting (iv) Clients, products, and business practices, which means the operational loss event type category that comprises operational losses resulting from the nature or design of a product or from an unintentional or negligent failure

official document · source cfr-2024 · id 12:§ 1240.101