Characteristics of Managing Operational Banking Risk

The objective of this paper is to provide a global perspective of the operational risk from a banking societies’ viewpoint. We describe the main regulations and settlements in the field and examine the various approaches of the operational banking risk. The paper presents the need of banks to managi...

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Main Authors: Leonardo Badea, Adela Socol
Format: Article
Language:English
Published: General Association of Economists from Romania 2008-12-01
Series:Theoretical and Applied Economics
Subjects:
Online Access: http://store.ectap.ro/articole/354.pdf
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author Leonardo Badea
Adela Socol
author_facet Leonardo Badea
Adela Socol
author_sort Leonardo Badea
collection DOAJ
description The objective of this paper is to provide a global perspective of the operational risk from a banking societies’ viewpoint. We describe the main regulations and settlements in the field and examine the various approaches of the operational banking risk. The paper presents the need of banks to managing operational risk. We study comparatively for a banking society the capital charge for covering the operational risk under the basic indicator approach and under the standardized approach. We present a case study of implementing current capital requirements at the level of a Romanian banking society. From the theoretical approach and from the description of quantifying of operational banking risk, the results of this study insist on the importance of measuring of operational banking risk and identifies major issues that need to be considered to improve the managing operational banking risk.
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spelling doaj.art-4d4a54d4667b4fbeae1d949c81c410882022-12-22T01:08:28ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292008-12-01XV1218418678Characteristics of Managing Operational Banking RiskLeonardo Badea0Adela Socol1 „Valahia” University of Targoviste „1 December” University of Alba Iulia The objective of this paper is to provide a global perspective of the operational risk from a banking societies’ viewpoint. We describe the main regulations and settlements in the field and examine the various approaches of the operational banking risk. The paper presents the need of banks to managing operational risk. We study comparatively for a banking society the capital charge for covering the operational risk under the basic indicator approach and under the standardized approach. We present a case study of implementing current capital requirements at the level of a Romanian banking society. From the theoretical approach and from the description of quantifying of operational banking risk, the results of this study insist on the importance of measuring of operational banking risk and identifies major issues that need to be considered to improve the managing operational banking risk. http://store.ectap.ro/articole/354.pdf operationalbankingriskcapital adequacychallanges
spellingShingle Leonardo Badea
Adela Socol
Characteristics of Managing Operational Banking Risk
Theoretical and Applied Economics
operational
banking
risk
capital adequacy
challanges
title Characteristics of Managing Operational Banking Risk
title_full Characteristics of Managing Operational Banking Risk
title_fullStr Characteristics of Managing Operational Banking Risk
title_full_unstemmed Characteristics of Managing Operational Banking Risk
title_short Characteristics of Managing Operational Banking Risk
title_sort characteristics of managing operational banking risk
topic operational
banking
risk
capital adequacy
challanges
url http://store.ectap.ro/articole/354.pdf
work_keys_str_mv AT leonardobadea characteristicsofmanagingoperationalbankingrisk
AT adelasocol characteristicsofmanagingoperationalbankingrisk