Factors affecting operational risk management of Vietnam commercial banks in Dong Nai province

Abstract

Operational risk management and supervision are essential as a bank's reliable shield to prevent violations of banking risk management principles. Using the convenient sampling method, the authors surveyed 336 valid answer sheets, corresponding to 350 managers and staff working at Vietnam commercial banks in Dong Nai province. Research results show that there are 5 factors affecting operational risk management with a significance level of 5%, with an adjusted R2 coefficient of 0.604, which means that the built multiple linear regression model. The fit for the data set is 60.4%, meaning the model explains 60.4% of the variation in operational risk management due to 5 impact factors. Finally, the authors propose five policy implications that contribute to improving operational risk management, corresponding to the five factors in order of priority: Operational risk management related to organizational structure the highest standardized regression coefficient of 0.468, and the leadership perspective on operational risk management with the lowest standardized regression coefficient of 0.159.