Operational Risk Management in Banking Sector: an Overview

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

The operational hazard profile and control condition is surveyed by business administration through particular gatherings which cover administration, hazard and control. Organizations are required to report their operational dangers on both a consistent and an occasion driven premise. Key indicators (KIs) allows Barclay to monitor its operational risk profile and let management know when risk levels go beyond acceptable ranges and make timely decision. The Group recognizes and assesses all risks within every business and evaluates the key controls to mitigate those risks. These risk assessments are checked regularly for assurance of businesses understanding the risks they

Effective planning & execution of risk assessment procedure in all financial & operating sectors to identify potential risk to organization.

Furthermore, outdated technology would impact the facilities ability to prevent cyber-attacks, compete with competitors, provide superior customer service, and maintain workplace efficiency. Additionally, events influencing the economic and political environment could impact financial stability for the organizations. External environmental hazards include extreme weather conditions that affect customer and employee safety. In addition, factors within ABC Community Banks internal environment include communications channels, as well as, the facilities culture. Communication channels impact the institutions policies, procedures and trainings, which when inadequate may cause work place errors. Moreover, assessing the culture will determine the general attitude and viewpoints of employees (Elliott, 2012). In scanning the environment of ABC Community Bank, the organizations can identify areas of weakness and adapt, in order to maintain tolerable uncertainty, while increasing business continuity and ultimately survival. Therefore, ABC Community Banks internal and external analysis will provide the groundwork for creating a risk management program that aligns with the organizations goals and risk aptitude.

Within business, there will always be operational risks to consider. "Operating risk is the basic

A community bank is exposed to different types of risks. Hazard or pure risks may or may not result in loss and are, generally, insured, whereas, financial risks are external threats with the potential to affect the bank’s objectives. For the CRO, managing various types of risks is essential for the overall profitability of the bank. To minimize the effect of hazard and financial risks, the CRO will implement ERM or traditional risk management processes to create a program for risk management.

Objective: To find out the risk of customers using bank accounts and provide methods for mitigation of the highest priority residual risk.

According to IRM-AIRMIC-ALARM (2002), risk management actually defines every organisational strategic management; it comprises the process which identifies and treats the internal and external risks and adds sustainable value to the organisation and its stakeholders by decreasing the probability of not achieving the organisation’s overall objectives. The specific institutes suggest that risk management lies in the strategic, tactical and operational levels, and its embodiment in all tasks and roles is required; it is a consistent manner for an organisations’ operation, which leads to effective decision making, efficient allocation and protection of the organisational assets, and enrichment of the organisational

J.P. Morgan Private Bank was one of the most successful banking services globally. It offered high-end financial products and services with professional risk management team. In financial crisis, the Private Bank successfully survived with relatively great performance. This paper would exposit the key to their success of risk management by answering six questions.

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

* Operational Risk: It includes all the major and minor processes taking place in the company. It included: trained Human Resources, strong IT Infrastructure, management and repair of equipments. The risk involved has low

1. To what extent is the performance of commercial bank affected by credit risk management?

In the first section, we will look at the overview of the banking industry such as the strategic position, its structure, and information on major competitors. We will also look at the strategic developments at the industry level as well as overall competitive challenges. We analyzed the trends that impact on the business growth, innovation and risk management. We also examined the implications of some developments for business, regulatory

risk management operations of the company, to include the development of a financial and operational strategy, metrics tied to that strategy, and the ongoing development and

When making a financial analysis on a bank, the type of business it conducts need to be considered. Specialization can lead a bank to operate in different practices and have a varied structure of their balance sheet. If the structure and composition of the bank is not to be considered, financial statement analysis will provide misleading information. This report will investigate the implications of bank specialization on its financial statement analysis.