ABSTRACTThe study sought to assess operational risks management by listed commercial banks in Ghana. The study adopted the descriptive research design approach. Purposive sampling technique was adopted in the selection of one hundred and three (103) respondents for the study. The study used quantitative data from both primary and secondary …
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ABSTRACTThe study sought to assess operational risks management by listed commercial banks in Ghana. The study adopted the descriptive research design approach. Purposive sampling technique was adopted in the selection of one hundred and three (103) respondents for the study. The study used quantitative data from both primary and secondary sources. The primary data was collected by using questionnaire. The study adopted both the descriptive and inferential data analysis. The study found among others that the main operational risks confronting commercial banks in Ghana are people related risks, information technology related risks, and process related risks. These risks positively influence the returns of commercial banks in Ghana. As part of the mechanisms in place to curtail debilitating impacts of operational risk in commercial banks, they have internally developed operational risk management procedures which incorporate the Basel III approaches to operational risk management. These operational risk management policies were deemed effective since the banks allocated appropriate resources to their operational risk management with management ensuring bank-wide operational risk awareness environments which are supported by appropriate and adequate organizational structure and processes to implement strong risk cultures. The study therefore recommended that management develop sensitization policies to sensitize employees and give appropriate training on operational risk management to entrench risk awareness firm-wide. These trainings should not only be regular but should be in tandem with emerging issues of ORM practices and strategic compliance.DECLARATIONABSTRACTACKNOWLEDGEMENTSDEDICATIONTABLE OF CONTENTSLIST OF TABLESLIST OF FIGURESCHAPTER ONE: INTRODUCTIONBackground to the StudyStatement of the ProblemResearch ObjectivesResearch QuestionsSignificance of the StudyDelimitationsOrganization of the StudyCHAPTER TWO: LITERATURE REVIEWIntroductionTheoretical FrameworkEnterprise Risk Management (ERM) TheoryDefinition of ConceptsRiskOperational RiskTypes of Operational RiskPeople RiskInternal OperationsExternal EventsIT System RisksCategories of Operational Risks in Commercial BanksOperational Risk Management in the Banking IndustryRisk Identification and AnalysisRisk AssessmentRisk MeasurementRisk MonitoringControlling RisksEmpirical ReviewConceptual FrameworkConclusionCHAPTER THREE: RESEARCH METHODSIntroductionResearch DesignPopulation of the StudySample and Sampling ProcedureData CollectionData Collection InstrumentsData Collection ProcedureData AnalysisCHAPTER FOUR: RESULTS AND DISCUSSIONIntroductionResponse RateDemographic Characteristics of RespondentsOperational Risks Confronting Commercial BanksEffectiveness of the Operational Risk Management Policies Adopted by the Selected Commercial BanksRelevance of Operational Risk in the Banking Industry in GhanaThe Allocation of Appropriate Resources in Support of Operational Risk Management Policy and Practice by BanksDevelopment of Close Links between Banks’ Strategic Objectives and Management of Operational RiskExistence of Internally Developed Operational Risk Management Procedures or Guidelines?Level of Compliance of Operational Risk Management Practices in the BanksOperational Risk Management Approach Adopted by the Bank and the Level of ComplianceRisk Governance Adopted by the Surveyed Banks Adopted by the Bank and the Level of ComplianceRisk OversightEffect of Operational Risk on the Performance of Commercial BanksEffect of Operational Risk and Banks PerformanceDiscussion of FindingsCHAPTER FIVE: SUMMARY, CONCLUSIONS ANDRECOMMENDATIONSIntroductionSummary of Major FindingsConclusionsRecommendationsRecommendations for Further StudiesREFERENCESAPPENDIX A
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