Operational Risk has been increasing day by day in the Nepalese Financial Sector attracting great threats. It is always difficult to assess that when and how the operational risk events take place. But, the losses stemming from operational risks may erode the capital of a BFI with such a magnitude and intensity that the BFI may be left with no room for escaping from the impact, which could precipitate up to a situation of collapse. Therefore, a clear understanding on operational risk and its control has been always a challenge to the management.
In order to manage Operational risk, Banks and Financial Institutions (BFIs) formulate Operational Risks Management Policy, which is supported by a Standard Operation Manual/Guideline and generally rely heavily on the internal audit function for the assurance that the Policy and guidelines have been duly complied with.
Internal Audit and / or External Auditor may not always be able to capture the actual picture as they submit their report based on the sample audit and it is basically post events. One of the critical components in the operational risk management is human assets (people). People do involve in managing all risks like Credit Risks, Market Risks, Reputational Risks, etc. Unless human assets are strengthened with required skills for managing all types of risks and cultured with good corporate governance, managing operational risks will not be possible. Operational risks can be mitigated and managed by the combine effort of all Staffs and Board of Directors.
In view of this, National Banking Institute pleased to announce a program on Operation Risk Management.
