Chapter 28 - Bank Work, Employees, and Operational Risk Management in Developing Economies

Abstract

Operational risk manifests itself strongly in banking and, perhaps, more intriguingly than in most businesses. Gaps in services rendered to customers are a major cause of bank operational risk in developing economies. Orientation and disposition of bank employees to service shed light on the creation of operational risk—in much the same vein. These facts predisposed me to focus attention on bank operational risk—building insights into its hardly recognized connection with service orientation and disposition of employees. In doing so, I explore the underlying causes and nature of bank operational risk. I do so from the perspectives of interaction between three critical causes of bank operational risk in developing economies—the nature of bank work, failings in customer service, and employee situations. I situate bank operational risk in developing economies in work and service failings of bank managements and employees—focusing on the perspective of human elements at work.