QUALITATIVE AND QUANTITATIVE ASPECTS
          OF OPERATIONAL BANKING RISK IN ROMANIA


        Associate Professor PhD Adela Socol, e-mail: adelasocol@yahoo.com
                    “1 Decembrie 1918” University of Alba Iulia


       Abstract: The purpose of this paper is to present the quantitative and qualitative
aspects of operational banking risk to the level of Romanian banking societies. The study
focuses on the implementation and maintenance of an operational banking risk
management framework. The paper is organized as follows: first, it describes the
operational banking risk. Second, the paper presents the means through the banks
quantify the operational banks. Third, it is present the challenges of measurement of the
operational banking risk for supervisory authority and banks. The active banks in
Romania must determine their capital necessary for covering the operational risk using
one of the three means of quantification mentioned by the Basel II Agreement, assumed
by the Capital Adequacy Directive and by the national legislation – the National
Romanian Bank’s regulation regarding the operational risk: the Basic Indicator
Approach, the Standardized Approach and Advanced Measurement Approaches. Banks
may choose one of the three methods mentioned above.

       Keywords: operational risk, bank, operational risk management

       JEL codes: G20, G21, G28, F36