Relationship between operational risk management, size, and ownership of Indian banks

Sharifi, Sirus; Haldar, Arunima; Rao, D. N.

doi:10.1108/mf-05-2015-0145

Cited by 17 publications

(27 citation statements)

References 19 publications

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“…Given that external and internal injuries usually are closely linked to the individual institution, Apatachioae (2014) operational data in banks should be quite detailed to include a clear and comprehensive classification of the all the internal weaknesses when adoption changes. Sharifi et al (2016), studied the relationship between operational risk management, bank size, and ownership in 61 Indian banks during the period from 2010 to 2013 and found out that there is no significant relationship between ownership whether public, private or foreign and excess capital held by banks for managing operational risk. Wiley (2013) contend that after the end of some rogue businesses events in the 90s, the BCBS came up with a framework for managing and providing regulatory services for operational risks in financial institutions.…”

Section: Operational Risk Management (Orm)mentioning

confidence: 99%

Operational Risk Management in Financial Institutions: An Overview

Aloqab

Alobaidi

Raweh

2018

BER

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After the 2008 financial crisis, many attributed the crisis due to the inability of financial risks to manage operational risks. The period during and after 2008 was critical in providing insight on how vital operational risk management is essential to financial institutions and how best these risks can be managed. The study begins with an overview of the concept of risk and BASEL I, II and III and how they apply to financial institutions. Further, the paper discusses the growing need for operational risk management in the context of financial institutions taking into considerations various models and approaches used in the management of financial risks. Moreover, several pieces of literature discussed operational risks in the financial institutions. The paper also looks at the various methods of operational risk identification and management before concluding that for better management of operational risks in banks, there is the need to comply with both the national and international regulations and procedures.

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Section: Operational Risk Management (Orm)mentioning

confidence: 99%

Operational Risk Management in Financial Institutions: An Overview

Aloqab

Alobaidi

Raweh

2018

BER

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“…In most emerging economies, banks play the dominant role in the financial markets, while the capital markets tend to develop later. The Indian banks are no exception as a high proportion (about 33 percent) of household savings is held as deposits with banks and other financial intermediaries (Sharifi et al , 2016). The credit risk management in Indian banks assumes significance in the context of large number of small deposit accounts.…”

Section: Motivation For the Studymentioning

confidence: 99%

The relationship between credit risk management and non-performing assets of commercial banks in India

Sharifi

Haldar²,

Rao

2019

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Purpose The purpose of this paper is to examine the impact of credit risk components on the performance of credit risk management and the growth in non-performing assets (NPAs) of commercial banks in India. Design/methodology/approach The data are obtained from primary and secondary sources. The primary data are collected by administering questionnaire among risk managers of Indian banks. The secondary data on NPAs of Indian banks are from annual reports and Prowess database compiled by the Centre for Monitoring Indian Economy. Multiple linear regression is used to estimate the models for the study. Findings The results suggest that the identification of credit risk significantly affects the credit risk performance. The results are robust as credit risk identification is negatively related to annual growth in NPAs or loans. There is evidence in support of a priori expectation of better credit risk performance of private banks compared to that of government banks. Practical implications The study has implications for Indian banks suffering from a high level of losses due to bad loans. In addition, it will have implications for the implementation of new Basel Accord norms (Basel III) by the Reserve Bank of India. Social implications The high and rising level of NPAs will have adverse consequences for credit flow in the economy in the absence of appropriate intervention by government and central bank in the form of changes in institutional and regulatory infrastructure. The problems in banking and financial services sector will lead to lower industrial and aggregate economic growth, and lower (or negative) growth in employment. Originality/value There is little evidence on credit risk management practices of Indian banks, and its relationship with credit risk performance and NPA growth. The need for an effective risk management system to manage credit risk assumes importance and urgency in the context of high and rising NPAs of Indian banks, and the consequences for the Indian economy.

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“…Internal fraud, External fraud, Employment practices and the safety in the working place, Clients, products and business practices, Damage to physical assets, Business disruption and system failures, Execution, delivery and process management. Operational losses happen in US firms is mainly due to the failure of internal control (Sharifi, Haldar, & Rao, 2016).…”

Section: Operational Riskmentioning

confidence: 99%

Financial Risk and its Performance: A Study on Apollo Food Holdings Berhad in Malaysia

Ling

2019

SSRN Journal

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The performance of a company can be affected by the financial risks associated with it. It is important for a company to manage financial risks efficiently. The purpose of this study is to identify the impact of financial risks on the performance of Apollo Food Holdings Berhad which is a food and beverages company for the period of 2014-2018. This study develops multiple linear regression models to analyse the impact of financial risk on company performance. The findings show that operating margin is the most significant variable that positively influence the performance of the company. This study suggests that Apollo Food Holdings Berhad should deal with their operating margin in order to increase the performance and profitability of the company. This can be done by increasing the revenue or reducing its cost.

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Relationship between operational risk management, size, and ownership of Indian banks

Cited by 17 publications

References 19 publications

Operational Risk Management in Financial Institutions: An Overview

Operational Risk Management in Financial Institutions: An Overview

The relationship between credit risk management and non-performing assets of commercial banks in India

Financial Risk and its Performance: A Study on Apollo Food Holdings Berhad in Malaysia

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