Abstract
Operational risk management is an important aspect in an organisation and how organisation manage the risk efficiently. Hence, this study attempted to investigate the influence of firm-specific factors and macro-economic factors affecting operational risk of Tiong Nam Logistics Holding Berhad. This study employs time series regression analysis of firms in logistics and transportation industry in Malaysia from 2012 to 2016. The analysis shows that firm-specific factors (average collection period and corporate governance index score) and macro-economic factor (company’s beta) influence the operational risk of the firms. This study suggest that the firms should manage their operation and employees efficiently by establishing clear management policy and incorporate more corporate governance elements such as transparency, accountability, fairness, and independence in the firms.
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