IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v30y2013icp298-307.html
   My bibliography  Save this article

Operational risk escalation: An empirical analysis of UK call centres

Author

Listed:
  • Bryce, Cormac
  • Cheevers, Carly
  • Webb, Rob

Abstract

The paper investigates operational risk reporting behaviour and policy dissemination in the selling of financial products by a major British insurance company's call centres. The analysis of the predispositions of call centre employees to escalate operational risks within their working environment will be measured using the Theory of Planned Behaviour (TPB). The empirical analysis indicates that the effects of ‘Attitude’ and ‘Perceived Behavioural Control’ significantly affected an employee's intention to escalate operational risk events. Furthermore, the education and training provided to employees has enabled them to better report operational risk losses/events due to increased certainty of their operational risk losses/events knowledge. The study provides a foundation for future research examining the measurement of ‘people risk’, the collection of valid operational risk data and encourages policy makers to work alongside the insurance industry to spread best practice in capturing valid data, especially in the light of Solvency II implementation.

Suggested Citation

  • Bryce, Cormac & Cheevers, Carly & Webb, Rob, 2013. "Operational risk escalation: An empirical analysis of UK call centres," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 298-307.
    • Handle: RePEc:eee:finana:v:30:y:2013:i:c:p:298-307
    DOI: 10.1016/j.irfa.2013.05.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521913000689
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2013.05.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andreas A. Jobst, 2007. "It's all in the data – consistent operational risk measurement and regulation," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 15(4), pages 423-449, November.
    2. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    3. Fred D. Davis & Richard P. Bagozzi & Paul R. Warshaw, 1989. "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models," Management Science, INFORMS, vol. 35(8), pages 982-1003, August.
    4. Kruse, Jamie Brown & Thompson, Mark A., 2003. "Valuing low probability risk: survey and experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 50(4), pages 495-505, April.
    5. Powell, Melanie & Ansic, David, 1997. "Gender differences in risk behaviour in financial decision-making: An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 18(6), pages 605-628, November.
    6. Catherine C. Eckel & Philip J. Grossman, 2008. "Forecasting Risk Attitudes: An Experimental Study Using Actual and Forecast Gamble Choices," Monash Economics Working Papers archive-01, Monash University, Department of Economics.
    7. Urbany, Joel E & Dickson, Peter R & Wilkie, William L, 1989. "Buyer Uncertainty and Information Search," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(2), pages 208-215, September.
    8. Gerry Dickinson, 2001. "Enterprise Risk Management: Its Origins and Conceptual Foundation*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 26(3), pages 360-366, July.
    9. Jianakoplos, Nancy Ammon & Bernasek, Alexandra, 1998. "Are Women More Risk Averse?," Economic Inquiry, Western Economic Association International, vol. 36(4), pages 620-630, October.
    10. Stephen Deery & Roderick Iverson & Janet Walsh, 2002. "Work Relationships in Telephone Call Centres: Understanding Emotional Exhaustion and Employee Withdrawal," Journal of Management Studies, Wiley Blackwell, vol. 39(4), pages 471-496, June.
    11. Renate Schubert, 1999. "Financial Decision-Making: Are Women Really More Risk-Averse?," American Economic Review, American Economic Association, vol. 89(2), pages 381-385, May.
    12. Robert Webb & Cormac Bryce & Duncan Watson, 2010. "The effect of building society demutualisation on levels of efficiency at large UK commercial banks," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 18(4), pages 333-355, November.
    13. Dobler, Michael, 2008. "Incentives for risk reporting -- A discretionary disclosure and cheap talk approach," The International Journal of Accounting, Elsevier, vol. 43(2), pages 184-206.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bryce, Cormac & Dowling, Michael & Lucey, Brian, 2020. "The journal quality perception gap," Research Policy, Elsevier, vol. 49(5).
    2. Cormac Bryce & Thorsten Chmura & Rob Webb & Joel Stiebale & Carly Cheevers, 2019. "Internally Reporting Risk in Financial Services: An Empirical Analysis," Journal of Business Ethics, Springer, vol. 156(2), pages 493-512, May.
    3. Leaver, Meghan & Reader, Tom W., 2017. "Safety culture in financial trading: an analysis of trading misconduct investigations," LSE Research Online Documents on Economics 69210, London School of Economics and Political Science, LSE Library.
    4. Meghan P. Leaver & Tom W. Reader, 2019. "Safety Culture in Financial Trading: An Analysis of Trading Misconduct Investigations," Journal of Business Ethics, Springer, vol. 154(2), pages 461-481, January.
    5. Sinemis Zengin & Serhat Yuksel, 2016. "A Comparison of the Views of Internal Controllers/Auditors and Branch/Call Center Personnel of the Banks for Operational Risk: A Case for Turkish Banking Sector," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 5(4), pages 10-29, July.
    6. Bryce, Cormac & Webb, Rob & Cheevers, Carly & Ring, P. & Clark, G., 2016. "Should the insurance industry be banking on risk escalation for solvency II?," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 131-139.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Steve Agnew & Neil Harrison, 2017. "The Role of Gender, Cognitive Attributes and Personality on Willingness to Take Risks," Business and Economic Research, Macrothink Institute, vol. 7(1), pages 1-16, June.
    2. Dinky Daruvala, 2007. "Gender, risk and stereotypes," Journal of Risk and Uncertainty, Springer, vol. 35(3), pages 265-283, December.
    3. Anwesha Bandyopadhyay & Lutfunnahar Begum & Philip J. Grossman, 2021. "Gender differences in the stability of risk attitudes," Journal of Risk and Uncertainty, Springer, vol. 63(2), pages 169-201, October.
    4. Bryce, Cormac & Webb, Rob & Cheevers, Carly & Ring, P. & Clark, G., 2016. "Should the insurance industry be banking on risk escalation for solvency II?," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 131-139.
    5. Muriel Niederle, 2014. "Gender," NBER Working Papers 20788, National Bureau of Economic Research, Inc.
    6. Andersen, Steffen & Harrison, Glenn W. & Lau, Morten Igel & Rutström, E. Elisabet, 2010. "Preference heterogeneity in experiments: Comparing the field and laboratory," Journal of Economic Behavior & Organization, Elsevier, vol. 73(2), pages 209-224, February.
    7. Brunette, Marielle & Jacob, Julien, 2019. "Risk aversion, prudence and temperance: An experiment in gain and loss," Research in Economics, Elsevier, vol. 73(2), pages 174-189.
    8. José García-Montalvo & Marta Reynal-Querol, 2019. "Gender and Credit Risk: A View From the Loan Officer’s Desk," Working Papers 1076, Barcelona School of Economics.
    9. Brunette, Marielle & Jacob, Julien, 2019. "Risk aversion, prudence and temperance: An experiment in gain and loss," Research in Economics, Elsevier, vol. 73(2), pages 174-189.
    10. José Garcia Montalvo & Marta Reynal-Querol, 2019. "Gender and credit risk: a view from the loan officer's desk," Economics Working Papers 1644, Department of Economics and Business, Universitat Pompeu Fabra.
    11. Andrea Bellucci & Alexander Borisov & Alberto Zazzaro, 2011. "Do Male and Female Loan Officers Differ in Small Business Lending? A Review of the Literature," Contributions to Economics, in: Giorgio Calcagnini & Ilario Favaretto (ed.), The Economics of Small Businesses, chapter 0, pages 195-219, Springer.
    12. J. Francois Outreville, 2014. "Risk Aversion, Risk Behavior, and Demand for Insurance: A Survey," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 37(2), pages 158-186.
    13. Matthias Gysler & Jamie Kruse & Renate Schubert, 2002. "Ambiguity and Gender Differences in Financial Decision Making: An Experimental Examination of Competence and Confidence Effects," CER-ETH Economics working paper series 02/23, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    14. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    15. Marie-Claire Villeval & Nabanita Datta Gupta & Anders Poulsen, 2005. "Male and Female Competitive Behavior - Experimental Evidence," Working Papers 0512, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    16. Muravyev, Alexander & Talavera, Oleksandr & Schäfer, Dorothea, 2009. "Entrepreneurs' gender and financial constraints: Evidence from international data," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 270-286, June.
    17. Alice Wieland & James Sundali & Markus Kemmelmeier & Rakesh Sarin, 2014. "Gender differences in the endowment effect: Women pay less, but won't accept less," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(6), pages 558-571, November.
    18. Andrea Lippi & Laura Barbieri & Mariacristina Piva & Werner De Bondt, 2018. "Time-varying risk behavior and prior investment outcomes: Evidence from Italy," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 13(5), pages 471-483, September.
    19. Daruvala, Dinky, 2006. "Gender, Risk and Stereotypes," Working Papers in Economics 211, University of Gothenburg, Department of Economics.
    20. Ongena, S. & Popov, A., 2013. "Take Care Of Home And Family, Honey, And Let Me Take Care Of The Money. Gender Bias And Credit Market Barriers For Female Entrepreneurs," Other publications TiSEM 6e4843b2-e333-48f5-bf18-7, Tilburg University, School of Economics and Management.

    More about this item

    Keywords

    Operational risk; Risk escalation; Theory of Planned Behaviour; Risk management;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:30:y:2013:i:c:p:298-307. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.