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Operational risk – model of analysis and control

Author

Listed:
  • Constantin ANGHELACHE

    (Bucharest University of Economic Studies / „Artifex” University of Bucharest)

  • Madalina-Gabriela ANGHEL

    („Artifex” University of Bucharest)

  • Aurelian DIACONU

    („Artifex” University of Bucharest)

  • Florin Paul Costel LILEA

    („Artifex” University of Bucharest)

Abstract

Operational risk is important to know because, in its actual work, a bank needs to study the way in which operations are carried out, the monetary-financial system in which it operates and the system in which companies operate. Operational risk is one that can produce negative effects and, as a consequence, diminish the profitability of managers in banking. From this point of view, studying this risk is important to agree a rigorous banking strategy. In foreign trade, by using L / C (letter of credit) as a guarantee and payment method, elements that depend on one or the other partner may occur, especially when letters of credit are not guaranteed by a first-rank bank. Operational risk is important to be considered by any manager when hiring the bank he runs, managing it in operations, or when the client operates with a bank that he / she has not known enough or which can ultimately enter in the perimeter of risk, with effects that affect the client.

Suggested Citation

  • Constantin ANGHELACHE & Madalina-Gabriela ANGHEL & Aurelian DIACONU & Florin Paul Costel LILEA, 2017. "Operational risk – model of analysis and control," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(11), pages 102-107, November.
    • Handle: RePEc:rsr:supplm:v:65:y:2017:i:11:p:102-107
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    References listed on IDEAS

    as
    1. Ana Savić, 2008. "Managing It-Related Operational Risks," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 53(176), pages 88-109, January -.
    2. Lars Norden & Stefan van Kampen, 2015. "The Dynamics of Trade Credit and Bank Debt in SME Finance: International Evidence," RBA Annual Conference Volume (Discontinued), in: Angus Moore & John Simon (ed.),Small Business Conditions and Finance, Reserve Bank of Australia.
    3. Constantin ANGHELACHE & Alexandru MANOLE & Mădălina Gabriela ANGHEL & Diana Valentina SOARE, 2016. "Statistical-econometric model used to analyze the operational and insolvency risks," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 221-228, Autumn.
    4. Claeys, Sophie & Vander Vennet, Rudi, 2008. "Determinants of bank interest margins in Central and Eastern Europe: A comparison with the West," Economic Systems, Elsevier, vol. 32(2), pages 197-216, June.
    5. Gareth W. Peters & Pavel V. Shevchenko & Mario V. Wuthrich, 2009. "Dynamic operational risk: modeling dependence and combining different sources of information," Papers 0904.4074, arXiv.org, revised Jul 2009.
    6. Constantin ANGHELACHE & Alexandru MANOLE & Mădălina Gabriela ANGHEL & Diana Valentina SOARE, 2016. "Statistical-econometric model used to analyze the operational and insolvency risks," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(608), A), pages 221-228, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ana Maria POPESCU & Ștefan Virgil IACOB & Alina Eliza DABIJA, 2020. "Methods used in risk financing," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(625), W), pages 143-158, Winter.
    2. Constantin ANGHELACHE & Dana Luiza GRIGORESCU & Ștefan Gabriel DUMBRAVĂ, 2020. "The main theoretical aspects regarding the capital adequacy models," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(624), A), pages 261-270, Autumn.

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    More about this item

    Keywords

    operational risk; IT security; risk management; internal / external fraud; reputational risk;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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