ROLES AND RESPONSIBILITIES FOR MANAGING OPERATIONAL RISK IN A BANKING ENVIRONMENT

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Abstract

Operational risk management is one of the fastest growing management disciplines within a banking environment as a result of various disastrous international incidents. Subsequently, various global institutions got involved in order to ensure that the effect of similar events do not negatively influence the international industries, for example, the Basel Committee on Banking Supervision regarding banks. It is, however, a known fact that operational risks are difficult to manage, as it is not easy to quantify. Therefore, it is of the utmost importance to understand the concept of operational risk management and, more specifically, the actual roles and responsibilities of various role-players within an organisation. This paper aims to identify the main role-players involved in the management of operational risk in a banking environment and to identify their specific roles and responsibilities.

Keywords: Risk Governance, Risk Management Framework, Risk Reporting, Risk Control, Risk Identification, Risk Evaluation

How to cite this paper: Young, J. (2008). Roles and responsibilities for managing operational risk in a banking environment. Corporate Ownership & Control, 5(3), 34-46. https://doi.org/10.22495/cocv5i3p4