Work

A review of operational risk in banks and its role in the financial crisis

Year: 2013

Type: article

Abstract: 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.

Source: South African Journal of Economic and Management Sciences

DOI: 10.4102/sajems.v16i4.440

Authors: Erika De Jongh, Riaan De Jongh, Dawie De Jongh, Gary Van Vuuren

Institution: North-West University

Language: English

Topic: Risk Management in Financial Firms

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $793

Funder: National Research Foundation