The Endogeneity Quagmire Empirical Evidence from Telecommunication Industry of Pakistan

Purpose: The current research aims to analyze the particular quagmire of endogeneity by considering panel data with the renowned challenge of limited periods. Design/Methodology/Approach: More specifically, the empirical methodology is applied to a novel sector of Telecommunications in Pakistan by analyzing the possible relationship between Operational Risk and a Telecommunication company’s financial performance. The efficacy of the results is further tested by additional tests of GMM. Operational risk in the study is proxied with three variables. Performance is measured in terms of Returns with respect to Equity holders and Total Assets. From the point of view of management, Asset utilization is also used as a proxy for financial performance. Findings: Results show a presence of a significant and a negative relationship between operational risk and management performance and returns, thereby emphasizing the importance of operational risk management for enhanced performance in light of the theory of performance frontiers introduced by Schmenner and Swink in 1998. Implications/Originality/Value: The results suggest that the focus on operational risk management should be revitalized if the firms seek improved performance and a sustainable competitive advantage.

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THE EFFECT OF OPERATIONAL RISK MANAGEMENT PRACTICES ON THE FINANCIAL PERFORMANCE IN COMMERCIAL BANKS IN TANZANIA

American Journal of Finance ◽

10.47672/ajf.83 ◽

2016 ◽

Vol 1 (1) ◽

pp. 29

Author(s):

Kerongo Maatwa Meshack ◽

Rose Wairimu Mwaura

Keyword(s):

Risk Management ◽

Credit Risk ◽

Financial Performance ◽

Commercial Banks ◽

Management Practices ◽

Operational Risk ◽

Operational Efficiency ◽

Primary Data ◽

Operational Risk Management ◽

Insolvency Risk

Purpose: The purpose of the study was to determine the effect of operational risk management practices on the financial performance in commercial banks in TanzaniaMethodology: The research problem was studied by use of a descriptive research design. The population of the study consisted of all commercial banks in Tanzania. The study used the sample size of 34 commercial banks in Tanzania. Therefore all the commercial banks participated in equally. Questionnaires were the primary data collection tool in this study. The data gathered from the respondents shall be analyzed and presented using descriptive statistics.Results: The study found that the three independent variables in the study credit risk, Insolvency risk and Operational efficiency influenced the financial performance for the period under study. Credit risk Insolvency risk and Operational efficiency influenced commercial banks financial performance for the period of study.Unique contribution to theory, practice and policy: This study therefore recommends that the commercial banks should handle their operations appropriately as the changes in the factors like Insolvency and Credit risk bring about an effect on the profitability of commercial banks hence affecting their financial performance

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ASSESSING THE IMPACT OF OPERATIONAL RISK MANAGEMENT ON FINANCIAL PERFORMANCE OF SELECTED MAINSTREAM COMMERCIAL BANKS IN CAMEROON

International Journal of Research In Commerce and Management Studies ◽

10.38193/ijrcms.2020.2021 ◽

2020 ◽

Vol 02 (02) ◽

pp. 01-16

Author(s):

Alain Vilard Ndi Isoh ◽

Egute Mispar Ambang ◽

NCHISE Delphine NCHANG

Keyword(s):

Risk Management ◽

Financial Performance ◽

Commercial Banks ◽

Operational Risk ◽

Operational Risk Management ◽

The Impact

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Analysis of Impacts of Operational Risk Management Practices on Banks’ Financial Performance: Study of Selected Commercial Banks in Nigeria

International Journal of Finance & Banking Studies (2147-4486) ◽

10.20525/ijfbs.v9i1.634 ◽

2020 ◽

Vol 9 (1) ◽

pp. 22-35

Author(s):

Diekolola Oye

Keyword(s):

Risk Management ◽

Financial Performance ◽

Commercial Banks ◽

Management Practices ◽

Secondary Data ◽

Operational Risk ◽

Multiple Regression Model ◽

Performance Study ◽

Operational Risk Management ◽

The Impact

Increase in losses borne by banks as a result of inadequate operational risk management practices and the adverse impact on banks’ financial performance has been a major concern to bank management and regulators. This study analysed the impact of operational risk management practices on the financial performance of commercial banks in Nigeria. 10-years (2008 - 2017) secondary data extracted from audited financial statements of selected commercial banks in Nigeria was used for the study. The data was analysed using the Linear Multiple Regression Model. The results showed that there is a positive relationship between operational risk management and the financial performance of banks. The findings revealed that sound operational risk management practices impact positively on the financial performance of banks. We, therefore, recommend that banks’ management should deploy adequate resources towards understanding operational risk to ensure sound operational risk management and improved financial performance of banks.

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Operational Risk Management and Financial Performance; Evidence from Deposit Taking Savings and Credit Cooperative Societies in Western Kenya

Scholars Journal of Economics Business and Management ◽

10.36347/sjebm.2020.v07i09.003 ◽

2020 ◽

Vol 7 (9) ◽

pp. 299-303

Author(s):

Otanga Grace Kemunto ◽

Dr. Momanyi Gideon ◽

Dr. Mule Robert Kisavi

Keyword(s):

Risk Management ◽

Financial Performance ◽

Operational Risk ◽

Western Kenya ◽

Operational Risk Management

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Perceived Operational Risk Management and Customer Complaints in Malaysian Conventional Banking Industry

Advanced Science Letters ◽

10.1166/asl.2015.5936 ◽

2015 ◽

Vol 21 (4) ◽

pp. 745-750 ◽

Cited By ~ 2

Author(s):

Noor Fareen Abdul Rahim ◽

Hasnah Haron ◽

Siti Rohaida Mohamed Zainal

Keyword(s):

Risk Management ◽

Negative Relationship ◽

Operational Risk ◽

Hazard Identification ◽

Resource Base ◽

Operational Risk Management ◽

Customer Complaints ◽

Bank Branches ◽

The Relationship ◽

Survey Questionnaires

The management of operational risk is not a new practice; it has always been important for banks to try to prevent fraud, and reduce errors in transaction processing in order to preserve the best quality services for their customers, and also to reduce huge losses. Ignoring the errors and operational risk will lead to customer complaints, losing potential and remaining customers and will jeopardize the bank sustainability in the long run. Thus the objective of this study is to investigate the relationship between perceived operational risk management and customer complaints. Resource Base theory is use in examining the relationships between perceived operational risk management and customer complaints. The survey questionnaires were emailed to branch managers and assistant managers of 650 local commercial bank branches across Malaysia and 132 fully completed survey questionnaires were received. Data was analyzed using multiple regressions. The study found that the banks have perceived operational risk management with a mean of 4.56, and can be concluded as very important in bank branches across Malaysia. As for the relationship of perceived operational risk management to customer complaints, it was found that the practice of hazard identification and formulation of implementation of risk control has a significant negative relationship to customer complaints as hypothesized. From the present study, management can formulate policies or strategies that can be used to mitigate risk in the bank and to enhance customer satisfaction in terms of services rendered by the tellers.

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