Appendix B: Federal Reserve Bank Review Findings Severity Levels
Each review finding or issue is classified using numeric rankings of 1 through 4, which are defined as follows:
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Severity Level 1: These issues are considered highly significant. They warrant immediate action and senior management attention and are only closed by RBOPS. Reserve Bank General Auditors report to RBOPS the status of these issues quarterly.
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Severity Level 2: These issues are considered significant and warrant prompt action and management attention. After consultation with RBOPS, Reserve Bank General Auditors may close these issues. General Auditors report to RBOPS the status of these issues quarterly. RBOPS follows up on severity level 2 issues as appropriate.
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Severity Level 3: These issues are less significant and may be closed by Reserve Bank General Auditors with RBOPS concurrence. General Auditors report to RBOPS the status of these issues quarterly. RBOPS follows up on these issues in its Reserve Bank review cycle.
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Severity Level 4: These issues are considered observations. Reserve Bank General Auditors follow up on a discretionary basis. RBOPS follows up on these issues in its review cycle unless General Auditors follow up on the issues and report them as closed.
