The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges

The operational risks in the bankinkg sector are undeniable realities of contemporary specific environment and their correct treatment is now both a necessity and a prerequisite for effective overall management process. Operational risk management brings a double challenge for banks. On the one hand...

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Main Author: Mirela-Anca SCHWARTZ-GÂRLIŞTE
Format: Article
Language:English
Published: Editura ASE 2013-03-01
Series:Revista de Management Comparat International
Subjects:
Online Access:https://www.rmci.ase.ro/no14vol1/14.pdf
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author Mirela-Anca SCHWARTZ-GÂRLIŞTE
author_facet Mirela-Anca SCHWARTZ-GÂRLIŞTE
author_sort Mirela-Anca SCHWARTZ-GÂRLIŞTE
collection DOAJ
description The operational risks in the bankinkg sector are undeniable realities of contemporary specific environment and their correct treatment is now both a necessity and a prerequisite for effective overall management process. Operational risk management brings a double challenge for banks. On the one hand the need to align with regulations in order to meet the requirements of the system’s regulators, on the other hand turning these requirements into a business opportunity. This paper is meant to provide an overlook on the operational risk management specific to the banking sector. The study briefly defines operational risk in banking and reviews the evolution of the good practices principles regarding operational risk management in banking. In the last part the paper paper deals with the approaches used for establishing the regulatory capital for operational risk as they were set by the Basel Committee for Banking Supervision: basic indicator approach, standardized approach and advanced measurement approach.
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spelling doaj-art-b6d4ebaaef1c44e18663ce808f8622c52025-08-20T02:19:23ZengEditura ASERevista de Management Comparat International1582-34582601-09682013-03-01141165174The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges Mirela-Anca SCHWARTZ-GÂRLIŞTE0 West University of Timisoara, Romania The operational risks in the bankinkg sector are undeniable realities of contemporary specific environment and their correct treatment is now both a necessity and a prerequisite for effective overall management process. Operational risk management brings a double challenge for banks. On the one hand the need to align with regulations in order to meet the requirements of the system’s regulators, on the other hand turning these requirements into a business opportunity. This paper is meant to provide an overlook on the operational risk management specific to the banking sector. The study briefly defines operational risk in banking and reviews the evolution of the good practices principles regarding operational risk management in banking. In the last part the paper paper deals with the approaches used for establishing the regulatory capital for operational risk as they were set by the Basel Committee for Banking Supervision: basic indicator approach, standardized approach and advanced measurement approach. https://www.rmci.ase.ro/no14vol1/14.pdfoperational riskoperational risk managementbasic indicator approachstandardised approachadvanced measurement approach
spellingShingle Mirela-Anca SCHWARTZ-GÂRLIŞTE
The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges
Revista de Management Comparat International
operational risk
operational risk management
basic indicator approach
standardised approach
advanced measurement approach
title The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges
title_full The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges
title_fullStr The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges
title_full_unstemmed The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges
title_short The Operational Risk Management in Banking – Evolution of Concepts and Principles, Basel II Challenges
title_sort operational risk management in banking evolution of concepts and principles basel ii challenges
topic operational risk
operational risk management
basic indicator approach
standardised approach
advanced measurement approach
url https://www.rmci.ase.ro/no14vol1/14.pdf
work_keys_str_mv AT mirelaancaschwartzgarliste theoperationalriskmanagementinbankingevolutionofconceptsandprinciplesbaseliichallenges
AT mirelaancaschwartzgarliste operationalriskmanagementinbankingevolutionofconceptsandprinciplesbaseliichallenges