2. PRINCIPLES FOR BUSINESS LINE MAPPING

Credit institutions must develop and document specific policies and criteria for mapping the relevant indicator for current business lines and activities into the standardised framework. The criteria must be reviewed and adjusted as appropriate for new or changing business activities and risks. The principles for business line mapping are: all activities must be mapped into the business lines in a mutually exclusive and jointly exhaustive manner; any activity which cannot be readily mapped into the business line framework, but which represents an ancillary function to an activity included in the framework, must be allocated to the business line it supports. If more than one business line is supported through the ancillary activity, an objective‐mapping criterion must be used; if an activity cannot be mapped into a particular business line then the business line yielding the highest percentage must be used. The same business line equally applies to any associated ancillary activity; credit institutions may use internal pricing methods to allocate the relevant indicator between business lines. Costs generated in one business line which are imputable to a different business line may be reallocated to the business line to which they pertain, for instance by using a treatment based on internal transfer costs between the two business lines; the mapping of activities into business lines for operational risk capital purposes must be consistent with the categories used for credit and market risks; senior management is responsible for the mapping policy under the control of the governing bodies of the credit institution; and the mapping process to business lines must be subject to independent review.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-09 · Text as adopted (Official Journal); later amendments are not incorporated in this text.