Operational Risk Management in a Financial Institution

Risk is a fundamental business factor, mostly because no activity can be profitable without risk. Therefore, any business company is trying to maximize its profits by managing the risk specific to its field of activity and by avoiding or transferring the risk that it does not want to take over. A robust banking strategy should include both bank risk management programs and procedures that aim to minimize the likelihood of these risks and the potential exposure of the bank. This stems from the primary objective of these policies, namely to minimize the additional losses or costs borne by the bank, and the central objective of banking activity is to gain the most profit for shareholders.