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Impact of leadership's perspective on the effectiveness of operational risk management at the Vietnamese commercial banks
Authors: Yen Thi Nguyễn
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The International Conference on Research in Management & Technovation
: 34     : 43-51
Publishing year: 3/2023
The research investigates the impact of the leadership's perspective on the effectiveness of operational risk management (ORM) at commercial banks based on the Basel Committee on Banking Supervision (BCBS). A quantitative method is utilized through the scale's reliability analysis, External Factor Analysis and regression with a dataset of 300 observations from the survey in 2021. The survey sample was determined to be senior staff with at least three years of experience working in the risk management department of commercial banks. The research results imply the leader's opinion has a strong positive impact on the commercial bank's ORM. In addition, other factors such as organizational structure, implementation of the ORM process, IT system, training, communication, and contingency business plans have a profound influence on the effectiveness of ORM in the banking business. These findings play an important role in theoretical and practical aspects, demonstrating the decisive role of the leader in ORM. On that basis, the study makes some recommendations to enhance ORM in Vietnamese commercial banks.