Developing a framework of Islamic bank operational risk management: ‘people risk’
The study of human resource has become a crucial topic in understanding the determinants of operational risk. Given the various sources of operational risk, losses resulting from staff performance seemed to be the major cause as employees are the key players who manage the processes and systems o...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2015
|
| Online Access: | http://journalarticle.ukm.my/9526/ http://journalarticle.ukm.my/9526/ http://journalarticle.ukm.my/9526/1/11146-30911-1-PB.pdf |
| Summary: | The study of human resource has become a crucial topic in understanding the determinants
of operational risk. Given the various sources of operational risk, losses resulting from staff
performance seemed to be the major cause as employees are the key players who manage the
processes and systems of undesired events. This study explored the influence of staff
performance attributes toward operational risk management, with a focus on ‘people risk’.
The study was conducted using qualitative approach via face-to-face and telephone
interviews with 14 respondents from 7 Islamic banks in Malaysia. Our preliminary finding
showed that training, education, experience and compensation lead toward better
management of ‘people risk’. Hence, a clear understanding of the factors affecting ‘people
risk’ would help ensuring an effective and successful strategy in managing human resources
especially in developing the operational risk management framework for the Islamic banking
institutions. |
|---|