Journal of Operational Risk

This study examines the impact of enterprise risk management practices on the capital structure decisions and firm performance of Indian firms listed on the Standard & Poor's BSE 500 index. The analysis is conducted using panel data regression covering the period from 2015 to 2022.

The existing literature provides limited evidence on how environmental, social and governance (ESG) performance relates to corporate risk (in particular, total risk and systemic risk) in China. Using a comprehensive panel of companies listed on China's A-share market (45 850 firm-year observations, and volatility-based risk measures constructed from 1 025 106 firm-day return records), this study examines whether changes in ESG performance are associated with firms' market-based risk exposure.

The management of operational risk is a critical issue for financial institutions, due to their complex business models and the need to comply with regulatory requirements. The second Basel Accord (Basel II), which was issued by the Basel Committee on Banking Supervision in 2004, provides guidance to central banks and supervisory authorities in member countries. In this context, this study provides a panoramic view of the current state of research on operational risk in financial institutions.

Basel III rules require financial institutions to report operational losses and detail them in a database. Operational losses should be classified by the Basel II-determined risk types and also by line of business. While the operational risk capital requirement is now calculated using the standardized measurement approach (SMA) based on gross income, the collected data is nevertheless still useful for risk management purposes.

This paper meticulously examines the path leading to Lebanon's ongoing financial crisis, which began (or at least became evident) in 2019, analyzing pivotal risk factors that led to the disintegration of its once-prosperous banking sector. It offers a thorough review of the crisis, delving into its origins and presenting actionable recommendations to rebuild trust and stability.

Tweet Facebook LinkedIn Save this article Send to Print this page Managing cybersecurity amidst limited resources is increasingly challenging. Updated regulations now mandate institutions to assess their information assets and their associated cyber risks. While various methodologies for asset identification, risk quantification, and analysis have been introduced, none of them have been tailored to address the requirements and attributes of the financial and banking sector.

Tweet Facebook LinkedIn Save this article Send to Print this page Research on AI in crisis management is currently fragmented and lacks a robust collaborative foundation among scholars and institutions. The role of AI in crisis management is expanding from internal organization processes to a broader external scope, fostering predictive and integrative empowerment. There is a growing focus on human-computer interaction in the evolution of AI applications in crisis management.

Tweet Facebook LinkedIn Save this article Send to Print this page Operational resilience should focus less on occasional adjustments under extreme circumstances and more on ensuring firms and their systems are robust and predicated on constant change.

Tweet Facebook LinkedIn Save this article Send to Print this page The Pan-Industry Risk Culture (PIRC) model is proposed, distilling 15 attributes of risk culture within three broad dimensions and providing the basis for a comprehensively described maturity model. The maturity model describes ‘what good is’ by defining three stages of organisational maturity.

Tweet Facebook LinkedIn Save this article Send to Print this page An NLP-based procedure is developed for detecting non-meritorious complaints. Complaints with higher priority to receive reliefs are identified. Supervised learning algorithms are assessed using anomaly detection indices. Complaint texts quantified by incorporating sentiment information.