Abstract
We present a framework to describe and analyze operational risk in financial services from an operations management perspective, focusing in particular on process design, process management, and human behavior aspects. The financial services industry differs from other service industries in ways that affect the nature of the operational risks it is subject to. In recent decades, many books and papers have focused on operational risk in financial services; however, this literature has focused mainly on the conceptual and statistical aspects of operational risk management and not on its operational aspects. Operational risk in financial services has not received much attention from the operations management community. The framework presented here is based on the premise that operational risk in financial services can reap significant benefits from research done in the theory and practice of operations management in manufacturing industries as well as in other services industries. The objective of this study is to propose particular challenges and questions raised in the practice of operational risk management that may stimulate future research in this particular area of operations management.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 426-445 |
| Number of pages | 20 |
| Journal | Production and Operations Management |
| Volume | 26 |
| Issue number | 3 |
| DOIs | |
| State | Published - Mar 1 2017 |
| Externally published | Yes |
Keywords
- capacity allocation
- human errors
- operational risk
- reliability
- total quality management
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Management of Technology and Innovation