Banking Management Regarding Operational Risks

Anca – Ioana Bumbeneci ()
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Anca – Ioana Bumbeneci: University of Craiova, Romania

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2011, vol. 12, issue 3, 533-540

Abstract: Banks are functioning in a complex economic environment, which becomes increasingly dynamic whenever the competition gets stronger. The risks implied by the banking activity have a multiple determination, starting from the specific features of their own operations, to the features of the internal and external environment. Under the Basel Agreement, the operational risk is approached depending on the category of events in which it is included. The Basel II Agreement uses three measuring methods: a fixed percentage (15%) of the average anual bank income (over the last three years), a variable percentage (between 12 and 18%) of the gross bank income (corresponding to the category in which the bank is included) and a combined methos based on the validity of the bank income. The operational risk management system involves 4 key-processes: identification, assessment, analysis and control – reduction of the risk. Each key process operates with relatively standardized measures.

Keywords: Basel Agreement; operational risk; measuring method; operational risk management; relatively standardized measures. (search for similar items in EconPapers)
JEL-codes: G21 M10 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:rom:rmcimn:v:12:y:2011:i:3:p:533-540

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