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Operational risk escalation: An empirical analysis of UK call centres

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  • Bryce, Cormac
  • Cheevers, Carly
  • Webb, Rob

Abstract

The paper investigates operational risk reporting behaviour and policy dissemination in the selling of financial products by a major British insurance company's call centres. The analysis of the predispositions of call centre employees to escalate operational risks within their working environment will be measured using the Theory of Planned Behaviour (TPB). The empirical analysis indicates that the effects of ‘Attitude’ and ‘Perceived Behavioural Control’ significantly affected an employee's intention to escalate operational risk events. Furthermore, the education and training provided to employees has enabled them to better report operational risk losses/events due to increased certainty of their operational risk losses/events knowledge. The study provides a foundation for future research examining the measurement of ‘people risk’, the collection of valid operational risk data and encourages policy makers to work alongside the insurance industry to spread best practice in capturing valid data, especially in the light of Solvency II implementation.

Suggested Citation

  • Bryce, Cormac & Cheevers, Carly & Webb, Rob, 2013. "Operational risk escalation: An empirical analysis of UK call centres," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 298-307.
    • Handle: RePEc:eee:finana:v:30:y:2013:i:c:p:298-307
    DOI: 10.1016/j.irfa.2013.05.002
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    References listed on IDEAS

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    Cited by:

    1. Bryce, Cormac & Dowling, Michael & Lucey, Brian, 2020. "The journal quality perception gap," Research Policy, Elsevier, vol. 49(5).
    2. Cormac Bryce & Thorsten Chmura & Rob Webb & Joel Stiebale & Carly Cheevers, 2019. "Internally Reporting Risk in Financial Services: An Empirical Analysis," Journal of Business Ethics, Springer, vol. 156(2), pages 493-512, May.
    3. Meghan P. Leaver & Tom W. Reader, 2019. "Safety Culture in Financial Trading: An Analysis of Trading Misconduct Investigations," Journal of Business Ethics, Springer, vol. 154(2), pages 461-481, January.
    4. Sinemis Zengin & Serhat Yuksel, 2016. "A Comparison of the Views of Internal Controllers/Auditors and Branch/Call Center Personnel of the Banks for Operational Risk: A Case for Turkish Banking Sector," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 5(4), pages 10-29, July.
    5. Leaver, Meghan & Reader, Tom W., 2017. "Safety culture in financial trading: an analysis of trading misconduct investigations," LSE Research Online Documents on Economics 69210, London School of Economics and Political Science, LSE Library.
    6. Bryce, Cormac & Webb, Rob & Cheevers, Carly & Ring, P. & Clark, G., 2016. "Should the insurance industry be banking on risk escalation for solvency II?," International Review of Financial Analysis, Elsevier, vol. 46(C), pages 131-139.

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    More about this item

    Keywords

    Operational risk; Risk escalation; Theory of Planned Behaviour; Risk management;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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