DRAFT. Classification: Internal. Prepared with corp-risk-entry v1.0.0. Not signed off.
OR-2026-118. New entry. Author: Operations Risk Partner.
Risk statement
Because only one trained person performs the daily nostro reconciliation [S1 s.3], breaks may go undetected during that person's absence, leading to financial loss and late regulatory reporting.
Category and owner
Operational risk: process execution. Owner: Head of Treasury Operations.
Inherent rating
[PROPOSED] Likelihood 4, impact 4, which is 16, High. Two late completions last quarter [S2 #41, #47]; value at stake from S1 s.1.
Controls
| Control | Type | Owner | Last test | Result |
|---|---|---|---|---|
| Next-day supervisor review | Detective | Treasury Supervisor | March [S3 p.4] | Effective |
| Named backup performer | Preventive | Head of Treasury Operations | None supplied | [UNVERIFIED: untested] |
Residual rating
[PROPOSED] With the supervisor review only: likelihood 3, impact 4, which is 12, High. The backup control earns no credit until tested.
Appetite position
Outside: "Low tolerance for financial loss from process failure".
Treatment
[PROPOSED] Reduce. Train a second performer, Head of Treasury Operations, 31 January. Test the backup during planned leave, Operational Risk Manager, 28 February.
Indicators
Days the reconciliation is completed after cut-off. Threshold [PROPOSED]: more than 1 per month. Monthly. Source: S2 incident log.
Review and history
[PROPOSED] Next review 1 March. Related: incidents #41 and #47 [S2].
Sources. S1 Procedure. S2 Incident log. S3 Assurance report, March.
Sign-off. Head of Treasury Operations: ____ Operational Risk Manager: ____