IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/vxixy2019i2p840-849.html
   My bibliography  Save this article

Operational Risk Management in a Financial Institution

Author

Listed:
  • Mitică Pepi

    (“Ovidius†University of Constanta)

Abstract

Risk is a fundamental business factor, mostly because no activity can be profitable without risk. Therefore, any business company is trying to maximize its profits by managing the risk specific to its field of activity and by avoiding or transferring the risk that it does not want to take over. A robust banking strategy should include both bank risk management programs and procedures that aim to minimize the likelihood of these risks and the potential exposure of the bank. This stems from the primary objective of these policies, namely to minimize the additional losses or costs borne by the bank, and the central objective of banking activity is to gain the most profit for shareholders.

Suggested Citation

  • Mitică Pepi, 2019. "Operational Risk Management in a Financial Institution," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 840-849, December.
  • Handle: RePEc:ovi:oviste:v:xix:y:2019:i:2:p:840-849
    as

    Download full text from publisher

    File URL: http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2020/02/Section%20V/32.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anthony Santomero, 1997. "Commercial Bank Risk Management: An Analysis of the Process," Journal of Financial Services Research, Springer;Western Finance Association, vol. 12(2), pages 83-115, October.
    2. Aebi, Vincent & Sabato, Gabriele & Schmid, Markus, 2012. "Risk management, corporate governance, and bank performance in the financial crisis," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3213-3226.
    3. Suren Pakhchanyan, 2016. "Operational Risk Management in Financial Institutions: A Literature Review," IJFS, MDPI, vol. 4(4), pages 1-21, October.
    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. Gerhard Philip Maree Grebe & Johan Marx, 2023. "The Perceived Relationship between Risk Culture and Operational Risk Management Practices of Ghanaian Banks," JRFM, MDPI, vol. 16(9), pages 1-22, September.

    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. Agarwal, Samanvaya & Kamath, Saipriya & Subramanian, Krishnamurthy & Tantri, Prasanna, 2022. "Board conduct in banks," LSE Research Online Documents on Economics 114400, London School of Economics and Political Science, LSE Library.
    2. Amzad Hossain & Farid A. Sobhani & Normah Omar & Norazida Mohamad & Jamaliah Said, 2019. "Corporate Governance, Risk Management and Ethical Investment: Evidence From Banking Industries," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 126-137, August.
    3. Tsionas, Mike G. & Mamatzakis, Emmanuel & Ongena, Steven, 2020. "Does risk aversion affect bank output loss? The case of the Eurozone," European Journal of Operational Research, Elsevier, vol. 282(3), pages 1127-1145.
    4. Agarwal, Samanvaya & Kamath, Saipriya & Subramanian, Krishnamurthy & Tantri, Prasanna, 2022. "Board conduct in banks," Journal of Banking & Finance, Elsevier, vol. 138(C).
    5. Owen, Ann L. & Temesvary, Judit, 2018. "The performance effects of gender diversity on bank boards," Journal of Banking & Finance, Elsevier, vol. 90(C), pages 50-63.
    6. Saito, Jun, 2016. "Boards of directors and bank performance in United Arab Emirates," IDE Discussion Papers 583, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. José Ruiz-Canela López, 2021. "How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?," JRFM, MDPI, vol. 14(3), pages 1-26, March.
    8. Ichiro Iwasaki, 2015. "Global Financial Crisis, Ownership Change, and Corporate Governance Evolution Firm-Level Evidence from Russia," KIER Working Papers 925, Kyoto University, Institute of Economic Research.
    9. Alin Marius Andries & Martin Brown, 2017. "Credit booms and busts in emerging markets," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(3), pages 377-437, July.
    10. Ajjima Jiravichai & Ruth Banomyong, 2022. "A Proposed Methodology for Literature Review on Operational Risk Management in Banks," Risks, MDPI, vol. 10(5), pages 1-18, May.
    11. Wu, Meng-Wen & Shen, Chung Hua, 2019. "Effects of shadow banking on bank risks from the view of capital adequacy," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 176-197.
    12. Monia Ben Ltaifa, 2018. "Risk measures in Islamic Banks MounaMoualhi 1 volatility of return on assets, volatility of return equity," Post-Print hal-01761031, HAL.
    13. Ismaila Akanni Yusuf & Agatha Nkem Amadi & Mohammed Bashir Salaudeen, 2020. "Effects of Risk Culture and Appetite on Effective Risk Management in Nigerian Banks: Case Study of United Bank for Africa Plc," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 81-87, June.
    14. Natalia Konovalova & Ineta Kristovska & Marina Kudinska, 2016. "Credit Risk Management In Commercial Banks," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 13(2), pages 90-100, June.
    15. Simona Galletta & Sebastiano Mazzù & Valeria Naciti, 2021. "Banks' business strategy and environmental effectiveness: The monitoring role of the board of directors and the managerial incentives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2656-2670, July.
    16. Paolo Agnese & Paolo Capuano, 2020. "Risk Governance and Performance: Evidence From Eurozone¡¯s Large Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 28-41, October.
    17. Treacy, William F. & Carey, Mark, 2000. "Credit risk rating systems at large US banks," Journal of Banking & Finance, Elsevier, vol. 24(1-2), pages 167-201, January.
    18. Ciprian MANEA, 2021. "A Managerial Approach on Reputational Risks in the Banking Sector under the Effects of Covid-19 Pandemic," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 32-38.
    19. Bowo Setiyono & Amine Tarazi, 2018. "Does Diversity of Bank Board Members Affect Performance and Risk? Evidence from an Emerging Market," CSR, Sustainability, Ethics & Governance, in: Belén Díaz Díaz & Samuel O. Idowu & Philip Molyneux (ed.), Corporate Governance in Banking and Investor Protection, chapter 0, pages 185-218, Springer.
    20. Chaivisuttangkun, Sirithida & Jiraporn, Pornsit, 2021. "The effect of co-opted directors on firm risk during a stressful time: Evidence from the financial crisis," Finance Research Letters, Elsevier, vol. 39(C).

    More about this item

    Keywords

    operational risk; financial institution; banking; risk evaluation;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    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:ovi:oviste:v:xix:y:2019:i:2:p:840-849. 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: Gheorghiu Gabriela (email available below). General contact details of provider: https://edirc.repec.org/data/feoviro.html .

    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.