n South African Journal of Economic and Management Sciences - A review of operational risk in banks and its role in the financial crisis
|Article Title||A review of operational risk in banks and its role in the financial crisis|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 North-West University, 2 North-West University, 3 North-West University and 4 North-West University|
|Publication Date||Jan 2013|
|Pages||364 - 382|
|Keyword(s)||Banks, Credit crisis, G21, G32, G46 and Operational risk|
ISI Social Science
The role of operational risk in the 2007/2008 financial crisis is explored. The factors that gave rise to the crisis are examined and it is found that although the event is largely regarded as a credit crisis, operational risk factors played a significant role in fuelling its duration and severity. It is concluded that, from an operational risk perspective, 2008 was the worst on record. Considering the extensive role of operational risk in global financial calamities, suggestions are made to improve the management of this risk type.
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