DOI: https://doi.org/10.32461/2226-3209.1.2018.178791

IDENTIFICATION OF EFFECTIVE PROCESS FACTORS ON OPERATIONAL RISK IN BANKS (CASE STUDY: KESHAVARZI BANK BRANCHES IN ZANJAN CITY)

Zahra Jafari, Davar Mahikar

Abstract


Abstract. On the one hand, Increasing rate of operational losses, and as rapid technological changes, increasing number of customers, electronic commerce and globalization of the economy and more complex banking transactions, large mergers and separations, causing more important of operational risk and its management. Identification and quantification of operational risk is not easy and is highly dependent on the structure of the internal processes and internal controls.This descriptive - survey research was conducted aimed to Identification of effective process factors on operational risk in the bank branches in Zanjan city(years of 2010-2014)by using Kolmogoroff-Smirnoff test and one -sample T test. Findings indicatesthe manner of service offering to customers with a value of 3.95 have greatest impact on operational risk management and hardware and software systems with a value of 3.66 and manner of communication between the staff with a value of 3.12 ranks next. Bank internal processes are effective on the bank's operational risk management.Also, the effect of environmental factors on the bank's operational risk management in the Keshavarzi bank rejected. So, the establishment of suitable internal controls, observance of circular letter by employees, assessment of employees' information,not involving
personal interests of employees in banking affairs, and employees' update information are effective in operational risk management and better control of resources and its profitability.
Keywords: Risk, Operational Risk, Risk Management, Effective Risk, keshavarzi Bank branches in Zanjan city.


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