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Loss event type classification The loss events types referred to in point (b) of Article 322(3) are the following:

Table 3 Event-Type Category Definition Internal fraud Losses due to acts of a type intended to defraud, misappropriate property or circumvent regulations, the law or company policy, excluding diversity/discrimination events, which involves at least one internal party External fraud Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third party Employment Practices and Workplace Safety Losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity/discrimination events Clients, Products & Business Practices Losses arising from an unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature or design of a product Damage to Physical Assets Losses arising from loss or damage to physical assets from natural disaster or other events Business disruption and system failures Losses arising from disruption of business or system failures Execution, Delivery & Process Management Losses from failed transaction processing or process management, from relations with trade counterparties and vendors