Md Monirul Islam
Managing operational risk is a challenging task for banks in Bangladesh. Operational risk can originate from activities at every level — from the Board of Directors down to the desk officer. The key challenges are: Policy and Framework Gaps The…
Md Monirul Islam
The operational risk management process involves three key steps: identification and assessment, monitoring and reporting, and control and mitigation. Step 1: Identification and Assessment Effective risk identification considers both internal and external factors. Internal factors include the bank’s structure, nature…
Md Monirul Islam
The Three Lines of Defense (3LoD) is a governance framework used by banks to manage operational risk. It establishes three distinct layers of responsibility — ensuring that risks are identified and controlled at the source, independently overseen, and independently verified….
Md Monirul Islam
The Basel Framework identifies seven types of operational loss events. Banks must track and report losses under each category: Internal Fraud Losses due to acts intended to defraud, misappropriate property, or circumvent regulations by at least one internal party. Examples…
Md Monirul Islam
Operational risk management involves identifying, assessing, monitoring, and controlling risks arising from people, processes, systems, and external events. The four cause factors of operational risk are: Process Risks arising from failures in internal processes and procedures:
Md Monirul Islam
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. According to Bangladesh Bank guidelines, it is the risk of unexpected losses due to physical catastrophe, technical failure, and…