Operational
risk
- Operational risk is the risk of
loss due to errors, interruptions, or damages caused by people,
systems, or processes.
- Operational risk occurs in all
day-to-day bank activities.
- Operational risk examples include
incorrect data entry, incorrect cheaque clearing etc.
Remedies for operational
risk in bank
- Train the employess and
workers.
- Establish cheque truncation
system.
- Create operational risk management
to control risk. It means Operational Risk Management is a
methodology for organizations looking to put into place real
oversight and strategy when it comes to managing risks.
- Operational Risk Management is an
essential step for every company that is looking to avoid
potentially damaging issues.
- Creating awarness amoung employess
about new types banking system and application.
- Recruitment of best and qualified
employess.
- Cross checking each and every
activity of particular day before banking hours itself.
- Comparison of actual performance
with the standards is undertaken to ascertain deviation, if
any.
- As soon as deviations are reported,
it is the duty of the bank manager to take steps to correct the
past action so that deviations may not occur again and the plans
are executed properly.