Term  Definition                            Benchmark A value which is used to compare the situation in the own organisation with the situation in other organisations (external benchmarking) or between organisational units within one organisation (internal benchmarking).  Best practice The best known standard for activities in the industry or cross industry wide. Best practice is normally used as a norm in the benchmarking analysis.  Cumulative  probability A number measured in percentage that reflects all events, which can occur up to this probability.  Model A simplified representation of reality for theoretical and practical analysis.  Probability  of Event  (PE) The estimate of a chance that an event will occur.  Risk  assessment An assessment of the level of risks to which (a part of) the financial institution is exposed to performed by either external or internal experts.  Risk driver A phenomenon which creates more risk.  Risk  indicator A hard fact measured on a regular basis, which indicates a (possible) change of the operational risk profile of the financial institution. Risk indicators may allow for a trend analysis over time and may trigger escalation procedures.  Key Risk Indicators believed to have high predictive value to changes in the risk level in the unit.  Risk Map A structured overview (based on various approaches) of the main processes of a financial institution, which will be used as a basis to analyse risks, losses and problems.  Risk  mitigation The set of measures which aim for a reduction of the risk.  Risk  weighting Measure that weights the relative riskiness of a business line or process.    Self  assessment An analysis of the operational risks to which an organisational unit is exposed conducted by the responsible staff in that unit.     Size  indicator A measure depicting the size of the individual bank/business line (used for scaling or relevance adjustments).