scholarly journals Critical success factors for the implementation of an operational risk management system

2012 ◽  
Vol 10 (1) ◽  
pp. 137-147
Author(s):  
M.D. Gibson ◽  
Jacobus Young
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Management System ◽  
Critical Success Factors ◽  
Success Factors ◽  
Operational Risk ◽  
Operational Risk Management ◽  
Critical Success ◽  
Risk Management System ◽  
Implementation Failure

Operational risk has become an increasingly important topic within financial institutions resulting in an increased spend on operational risk management solutions. While this is a positive approach, evidence has shown that information technology implementations have tended to have low rates of success. Research has highlighted that a series of defined critical success factors could reduce the risk of implementation failure. Twenty-nine critical success factors were identified by means of a literature review and confirmed by a questionnaire that was distributed to an identified target group within the South African financial services community. Reponses to the questionnaire revealed that 27 of the 29 critical success factors were deemed important and critical to the implementation of an operational risk management system.

scholarly journals Operational Risk Management under Basel II - The Case of An Binh Joint Stock Bank

2016 ◽  
Vol 19 (4) ◽  
pp. 108-126
Author(s):  
Trung Quoc Trinh ◽  
Thuy Thu Pham
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Risk ◽  
Business Environment ◽  
Basel Ii ◽  
Global Market ◽  
Local Market ◽  
Operational Risk Management

In order to enhance commercial banks’ safety in financial services, Basel Committee on Banking Supervision issued a framework on operational risk management under Basel II. In an ever riskier business environment, it is necessary for Vietnam’s commercial banks to increase their competencies in risk management, especially in operational risk management. This is to ensure a sustainable development for banks in the local market and in the global market as well. In recent years, Vietnam’s commercial banks have developed systems for operational risk management. Therefore, the performance assessment is of importance to improve and enlarge applications on operational risk management, from perceptions, corporate’s culture, procedures to other supportive measures on the field of risk management in Vietnam’s banking system.

scholarly journals THE EFFECT OF OPERATIONAL RISK MANAGEMENT PRACTICES ON THE FINANCIAL PERFORMANCE IN COMMERCIAL BANKS IN TANZANIA

2016 ◽  
Vol 1 (1) ◽  
pp. 29
Author(s):  
Kerongo Maatwa Meshack ◽  
Rose Wairimu Mwaura
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Commercial Banks ◽  
Management Practices ◽  
Operational Risk ◽  
Operational Efficiency ◽  
Primary Data ◽  
Operational Risk Management ◽  
Insolvency Risk

Purpose: The purpose of the study was to determine the effect of operational risk management practices on the financial performance in commercial banks in TanzaniaMethodology: The research problem was studied by use of a descriptive research design. The population of the study consisted of all commercial banks in Tanzania. The study used the sample size of 34 commercial banks in Tanzania. Therefore all the commercial banks participated in equally. Questionnaires were the primary data collection tool in this study. The data gathered from the respondents shall be analyzed and presented using descriptive statistics.Results: The study found that the three independent variables in the study credit risk, Insolvency risk and Operational efficiency influenced the financial performance for the period under study. Credit risk Insolvency risk   and Operational efficiency influenced commercial banks financial performance for the period of study.Unique contribution to theory, practice and policy: This study therefore recommends that the commercial banks should handle their operations appropriately as the changes in the factors like Insolvency and Credit risk bring about an effect on the profitability of commercial banks hence affecting their financial performance

scholarly journals Effect of Risk Management Practices On Corporate Investment of Financial Institutions in Rwanda: A Case Study of Selected Commercial Banks

2019 ◽  
Vol 4 (4) ◽  
Author(s):  
Emmanuel Byamungu ◽  
Irechukwu Eugenia Nkechi ◽  
Henry Jefferson Ogoi
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Management Practices ◽  
Operational Risk ◽  
Corporate Investment ◽  
Market Risk ◽  
Operational Risk Management ◽  
Strategic Risk ◽  
Strategic Risk Management

Risk management practices are currently a subject of interest and a novel impression beneath research and application by diverse organizations. Nevertheless, there seems much to be debated on this subject in terms of a general strategic risk management practices statement. There is uncertainty like, when there should be a declaration for each principal risk category the organization experiences or should exist a general risk management practices for the organization. A risk management practice is about achieving corporate goals. For many financial institutions (FIs), dual goals exist such as the social and economic perspectives. This study sought to analyze the effect of strategic risk management practices on corporate investment of selected financial institutions in Rwanda. The study aimed at establishing the effect of operational risk management practices, market risk management practices, compliance risk management practices and governance risk management practices on corporate investment in selected commercial banks in Rwanda. The study adopted descriptive research design. The study targeted 95 managers from finance, internal audit, risk compliance and operations departments. The sample size was 77 respondents. The research was conducted using primary and secondary data, which includes survey forms (questionnaires), interviews as well as reports of the targeted institutions. Information for the research were gathered utilizing organized surveys forms that were distributed to the targeted respondents. Narrative information obtained from interviews and open-ended questions in the questionnaire were analyzed using qualitative approaches. Validity and reliability of the instruments were tested using the Cronbach Alpha test retest methods. With the aid of Statistical Package for Social Science version 21.0, both descriptive statistics such as the means, modes, standard deviation, variances and inferential statistics were analyzed. The research revealed that management of operational risk has a constructive effect financial outcomes performance of financial institutions in Rwanda. The study found that there is a correlation between both operational risk management and market risk management and performance of the financial institutions. The research findings revealed that operational risk management (r=0.096, p<0.01), market risk management (r=0.506, p<0.01) and compliance risk (r=0.612, p<0.01) on corporate investments.

scholarly journals Problems of increasing the profitability of Russian commercial banks

2020 ◽  
pp. 6-12
Author(s):  
Aleksey Bobryshev ◽  
Svetlana Shamrina ◽  
Aleksandr Frolov
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Management System ◽  
Global Financial Crisis ◽  
Economic Capital ◽  
Foreign Banks ◽  
Risk Management System ◽  
The Global Financial Crisis ◽  
High Level ◽  
Credit Institutions

The article deals with the ways of obtaining income by banks. In modern conditions, taking into account the lessons and consequences of the global financial crisis, the regulator sets increasingly high requirements for the management and capital management system in credit institutions in the financial and banking services markets. In this regard, the number of banks that seek to improve the risk management system in order to bring it in line with the best foreign practices is constantly increasing. However, only a few Russian credit institutions have the necessary sources for calculating economic capital and its adequacy ratios. And only a few (mostly subsidiaries of large foreign banks) are able to make payments in accordance with international best practices. The ability to calculate economic capital, that is, the largest possible loss for a given time horizon, calculated with a set confidence interval, characterizes the high level of quality of the risk management system. The problems of increasing the profitability of commercial banks in the Russian Federation are also disclosed.

Construction of the Operational Risk Management System of Bank by Information Technology

2014 ◽  
Vol 926-930 ◽  
pp. 3774-3777
Author(s):  
Zhi Gang Li
Keyword(s):  
Information Technology ◽  
Risk Management ◽  
Electronic Commerce ◽  
21St Century ◽  
Commercial Banks ◽  
Operational Risk ◽  
Bank Risk ◽  
Economic Losses ◽  
Management Process ◽  
Risk Management System

The extensive application of information technology in all walks of life, extend the space of electronic commerce, commercial banks are also under various pressure. In recent years, because of the wrong operation brings huge economic losses, the risk to commercial banks in the management process is more and more complex. In the 21st century, the commercial banks have made great adjustment in the management process, during the exchanged system period, it is very easy to cause the risk. So China commercial banks began to pay attention to risk management in the management process. In the process of bank risk management , the application of information technology has an important role.

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