English / ქართული / русский /
Leila Ghudushauril


Adequate operational risk management in modern banking practice is one of the most important factors in a balanced banking risk management system. Therefore, it is quite natural that the Basel Committee has recently paid special attention to the study of operational risk factors and issues of their rational management.

The article discusses and analyzes the operational risk factors of a commercial bank, modern methods of its assessment and management, and expresses an opinion on their further improvement.

   Keywords: Basel Committee; Operational risk factors; Operational risk management methods: Basic indicator approach; Standardised approach; Advanced measurement approaches (AMA).


In banking practice, operational risk is the risk that the bank will incur losses as a result of internal control systems (mechanical or deliberate fraud committed by employees, technical and software errors) and external factors. External factors include litigation with a bank (legal risk), bank fraud and damage to tangible assets, which can be caused by various factors (earthquake, fire, attack, terrorist act, etc.).

Thus, among the main factors causing operational risk, it should be noted: 1) an inefficient internal control system; 2) improper performance of functions and duties by bank employees; 3) malfunctions of the technical systems of the bank; 4) Influence of external factors.

The operational risk assessment system is based on an assessment of the inherent operational risk and its mitigation factors (supervisory board, management, risk management and internal control mechanisms). Depending on the specifics of the bank, other critical sectors may be taken into account when assessing operational risk.For example, those operational risks that arise due to the dependence of the financial sector on telecommunications, information technology, transport and other areas.

To ensure proper management of operational risk, it is necessary for a commercial bank to have a certain methodology with which it will be possible to create an adequate system of reserving for possible losses due to operational risk.

 According to the recommendations of the Basel Committee, there are three main methods of creating reserves for possible losses due to operational risk:

1) Basic indicator approach;

2) Standardised approach;

3) Advanced measurement approaches (AMA).

In the process of managing operational risk, it is extremely important to take into account certain relationships that exist between credit, market and operational risks. Namely, an error made during a banking transaction due to the fault of a bank employee or a technically faulty operating system can lead to market or credit risk. As a rule, large banks, which are characterized by a complex infrastructure, a large number of customers and an extensive network of branches, are sensitive to operational risk.

Based on a review and analysis of the operational risk factors of a commercial bank, modern methods of risk assessment and management, the article expresses an opinion on their further development, namely:

  • • Adequate management of operational risk is possible if there is an effective system of internal control;
  • • It is preferable that the bank's management cover losses caused by operational risk by creating special reserves, similar to the system of reserves for possible losses on loans;
  • • Insurance of bank risks is widespread in modern banking practice. Losses due to operational risk are more insured;
  • • to ensure proper management of operational risk, it is necessary to have a separate structural unit in a commercial bank that will monitor all types of financial risks, including timely identification and elimination of the causes of operational risk;
  • • In addition, it is important that the Bank has an appropriate methodological framework (policies and procedures) in place to ensure the proper functioning of the internal control system, while at the same time allowing the Bank's management to continuously monitor its consistent performance.

Finally, it should be noted that the complete neutralization of operational risk is impossible, although in the optimal case, the measures taken and the risk management system should ensure its minimization.