Development of Risk Management Process Tool
Keywords:
Operational Risk, Risk Management, Financial InstitutionsAbstract
This study has attempted to develop a risk management process tool that can assist managers as well as employees in understanding risk. Also, contribute meaningful steps to be taken, to improve the risk management process, and possible consequences for not doing so. The study has made an attempt to identify the most contributing factor for operational risk within financial institutions. The study has opted both the method to find operational risk in financial institutions by comparing the primary data available from the research done at a consulting firm along with the secondary data taken from published research paper. Study is undertaken to confirm the most contributing operational risk factor in financial institutions. The development of risk management process tool is done on the basis of industry experiences and suggestions from industry personnel. Findings, reveal how operational risk persists within an financial institution. Further, how it can be managed and risk mitigation steps can be practiced within organizations to reduce the risk to certain extent. Also study has developed a risk management process tool for improving the overall risk management in financial institutions.
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