IDEAS home Printed from https://ideas.repec.org/a/rom/rmcimn/v12y2011i3p533-540.html
   My bibliography  Save this article

Banking Management Regarding Operational Risks

Author

Listed:
  • Anca – Ioana BUMBENECI

    (University of Craiova, Romania)

Abstract

Banks are functioning in a complex economic environment, which becomes increasingly dynamic whenever the competition gets stronger. The risks implied by the banking activity have a multiple determination, starting from the specific features of their own operations, to the features of the internal and external environment. Under the Basel Agreement, the operational risk is approached depending on the category of events in which it is included. The Basel II Agreement uses three measuring methods: a fixed percentage (15%) of the average anual bank income (over the last three years), a variable percentage (between 12 and 18%) of the gross bank income (corresponding to the category in which the bank is included) and a combined methos based on the validity of the bank income. The operational risk management system involves 4 key-processes: identification, assessment, analysis and control – reduction of the risk. Each key process operates with relatively standardized measures.

Suggested Citation

  • Anca – Ioana BUMBENECI, 2011. "Banking Management Regarding Operational Risks," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(3), pages 533-540, July.
  • Handle: RePEc:rom:rmcimn:v:12:y:2011:i:3:p:533-540
    as

    Download full text from publisher

    File URL: https://www.rmci.ase.ro/no12vol3/15.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Basel Agreement; operational risk; measuring method; operational risk management; relatively standardized measures.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    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:rom:rmcimn:v:12:y:2011:i:3:p:533-540. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Marian Nastase (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.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.