Operational risk management in the postal sector: A case study of a developing country

2021 ◽  
Vol 5 (1) ◽  
pp. 37-45
Author(s):  
Ramzi Trabelsi

The Tunisian Post is a multi-business organization and operates in a changing environment; it faces risks, internal or external. The Tunisian Post has taken a step in this new area of expertise, which is reflected in the establishment of an Operational Risk Management Unit. The main purpose of this article is to present the first experience of the Tunisian Post in this area of expertise. A survey was conducted by the risk management unit (RMU) on a sample of 65 postal offices in the period between 2015 and 2017. The survey covers almost all of the Tunisian territory. A database containing all the probable risks was sent to the post managers at the regional level to give their assessment in terms of frequency and impact of each type of risk on their structures. More than 40 executives and employees at the regional and central levels participated in the brainstorming for the development of recommendations and the establishment of a road map. The results showed that the risks related to IT risks are more frequent and critical, which can deter the quality of the services at the regional level. Despite the increasing attention to risk management in the public sector, more research is required, especially in the postal sector. Operational risk management is the unrevealed black box (Bracci, Tallaki, Gobbo, & Papi, 2021). So, this paper presents a practical and professional manner to analyze better the entities’ function at the regional level.

Author(s):  
Mahfod Aldoseri ◽  
Andrew C. Worthington

This chapter investigates the operational risk management and practices of Islamic and conventional banks in Saudi Arabia. Authors employ a sample of four Islamic and eight conventional banks and data gathered through a novel questionnaire administered to senior officers and managers carrying out risk management activity across five aspects of operational risk management: (i) understanding risk, (ii) risk management, (iii) risk assessment analysis, (iv) risk identification, and (v) risk monitoring. The results demonstrate that all of these play an important role in determining the quality of operational risk management. However, risk assessment analysis and risk monitoring are the most influential in determining the overall quality of operational risk management in both conventional and Islamic banks. Overall, conventional banks in Saudi Arabia are better than Islamic banks at operational risk management practices, suggesting the need for careful planning and strategizing, sound recruiting and training policies, and prudent monitoring of capital adequacy by regulators.


2021 ◽  
Vol 3 (3) ◽  
pp. 1-14
Author(s):  
Olajide Solomon Fadun ◽  
Diekolola Oye

Despite the institutionalization of operational risk management in banks and the strict supervision of bank regulators, operational risk events are still on the increase. It is becoming evident to banks that there is a need to identify the drivers of this risk and nib it at the root to reduce the probability of recurrence. Hence, this study examined the drivers of operational risks in Nigerian commercial banks and the extent to which each driver contributes to operational risk. To achieve the study’s objectives, primary data were collected from the Operational Risk Management Desks of six (6) sampled commercial banks and analyzed using SPSS and Microsoft Excel. The result showed that Internal processes, IT systems and Quality of Risk Officers are determinants of operational losses in banks. The internal process was however indicated as having the most impact. The study concluded that Internal Process is the major driver of operational risk in Nigerian Commercial banks. The researcher, therefore, recommends that bank management must have defined procedures for core activities and prioritize regular review of their critical processes to reduce operational risk events and the associated costs.


2020 ◽  
Vol 2 (2) ◽  
pp. 19-35
Author(s):  
Olajide Solomon Fadun ◽  
Diekolola Oye

Despite the institutionalization of operational risk management in banks and the strict supervision of bank regulators, operational risk events are still on the increase. It is becoming evident to banks that there is a need to identify the drivers of this risk and nib it at the root to reduce the probability of recurrence. Hence, this study examined the drivers of operational risks in Nigerian commercial banks and the extent to which each driver contributes to operational risk. To achieve the study’s objectives, primary data were collected from the Operational Risk Management Desks of six (6) sampled commercial banks and analyzed using SPSS and Microsoft Excel. The result showed that Internal processes, IT systems and Quality of Risk Officers are determinants of operational losses in banks. The internal process was however indicated as having the most impact. The study concluded that the Internal Process is the major driver of operational risk in Nigerian Commercial banks. The researcher, therefore, recommends that bank management must have defined procedures for core activities and prioritize regular review of their critical processes to reduce operational risk events and the associated costs.


Author(s):  
Costel Ciocea

Operational risk management consists in the identification and measurement, as complete as possible, of these risks, so that the company to be able to establish appropriate measures to avoid, reduce, transfer or accept, consciously, the risk. The main goal is prevention. Operational risk management is a complex process which involves their identification, assessment, monitoring and management. Starting from the European legislation, SIF Moldova has developed and adapted its own operational risk management system, targeting mainly its identification and evaluation, the analysis of activities vulnerable to operational risk, the establishment of the potential risks for each type of activity, the limitation of the operational risk caused by improper data processing, the implementation of internal regulations on the prevention and discovery of facts that can generate losses. To ensure an adequate quality of operational risk management and of the activities related to their control as well as for maintaining an appropriate level of accuracy on information provided to the supervisory authority (ASF), it is essential that the investment fund to build a stable and viable database, containing information relating to extended periods, and to ensure continued maintenance of this database.


2015 ◽  
Vol 10 (1) ◽  
pp. 1-43 ◽  
Author(s):  
Andrei L. Badescu ◽  
Lan Gong ◽  
X. Sheldon Lin ◽  
Dameng Tang

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