IDEAS home Printed from https://ideas.repec.org/a/rej/journl/v13y2010i36p171-185.html
   My bibliography  Save this article

Considerations Regarding Operational Risk Management in the Context of the Basel II Agreement

Author

Listed:
  • Ioan Trenca

    (Babes-Bolyai University, Cluj-Napoca, Romania)

  • Iulia Neag

    (Babes-Bolyai University, Cluj-Napoca, Romania)

Abstract

The main purpose of the present paper is to provide an analysis of the operational risk from the perspective of the financial institutions in Romania exposed to this cathegory of risk in the context of the Basel II Agreement. The first part of the study describes a theoretical background based on the recent specialized literature regarding the concept of the operational risk. The second part presents an analysis of the operational risk under the basic indicator approach, the standardized approach and the advanced measurement approach, suggesting the necessity of adequate capital requirements for the appropriate functionning of the bank’s ac-tivity. The most relevant results of the analysis insist on the importance of identifying, measuring and modelling operational risk and the benefits of continuously improving the instruments, methodology and technics of operational risk management. The conclusions of the work are related to the fact that operational risk management is a necessity in the context of the new challenges of the contemporary world and it requies advanced methods in order to effectively contribute to the development of the banking activity.

Suggested Citation

  • Ioan Trenca & Iulia Neag, 2010. "Considerations Regarding Operational Risk Management in the Context of the Basel II Agreement," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 13(36), pages 171-185, June.
    • Handle: RePEc:rej:journl:v:13:y:2010:i:36:p:171-185
    as

    Download full text from publisher

    File URL: http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2010-06-01/2133/je36-treanca-neag.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andreas A. Jobst, 2007. "It's all in the data – consistent operational risk measurement and regulation," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 15(4), pages 423-449, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Attila TamaÅŸ Szora & Iulian Bogdan Dobra, 2009. "Considerations Regarding The Influence Of The Base Leading Rate Over Investment Projects Financed By Eu Funds," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-44.
    3. Muhammad Yasran Rasheed & Asif Saeed & Ammar Ali Gull, 2018. "The Role of Operational Risk Management in Performance of Banking Sector: A Study on Conventional & Islamic Banks of Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 6(1), pages :1-16, March.
    4. Tursunalieva, Ainura & Silvapulle, Param, 2016. "Nonparametric estimation of operational value-at-risk (OpVaR)," Insurance: Mathematics and Economics, Elsevier, vol. 69(C), pages 194-201.
    5. Ahmad Raza Bilal & Noraini Bt. Abu Talib & Mohd Noor Azli Ali Khan, 2013. "Remodeling of risk management in banking: evidence from the sub-continent and gulf," Journal of Risk Finance, Emerald Group Publishing, vol. 14(5), pages 468-489, November.
    6. 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.

    More about this item

    Keywords

    operational risk; risk management; Basel II; baisc indicator approach; standardized approach.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rej:journl:v:13:y:2010:i:36:p:171-185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu Lupu (email available below). General contact details of provider: https://edirc.repec.org/data/frasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.