Operational risk management - a specific banks approach

              Adela Socol – Universitatea „1 Decembrie 1918” Alba Iulia
                           e-mail: adela_socol@yahoo.com

Abstract:
The key element of the proposed study is operational risk, considered to be the loss risk
resulting from shortages or collapses due to procedures, persons or internal systems or
external events of an organization. The definition includes the juridical risk and excludes
strategic and reputational risks and can be found in the New Agreement of Capital Basel
II (point 644 from the Agreement). The concept of operational risk is present in the
Romanian banking environment, as foreseen at the beginning of 2004 in the Romanian
banking legislation (art. 3 of the Norm BNR no. 17/2003) and considered to be the risk of
loss registration or of the nonrealization of estimated profits determined by internal
factors (unadequate processing of internal activities, the existance of personnel or
unadequate problems etc.) or of external factors (economic conditions, changes in the
banking environment, technological progresses etc.).

Key words: operational risk, risk management

JEL Code: G32