The Effect of Applying COSO’s Internal Control Framework on Operational Risk Management in the Commercial Banks in Jordan

Abstract

The study aimed to identify the effect of applying COSO’s internal control framework on operational risk management in the commercial banks in Jordan. In order to achieve the study objectives, a questionnaire was designed and distributed among the head offices of the surveyed banks. The study concluded that there is a significant effect of applying all internal control elements together according to COSO’s framework on operational risk management in the commercial banks in Jordan, and there is a significant effect for each element on operational risk management in these banks. The study also concluded that there is a medium degree of application of internal control elements according to COSO’s framework at the commercial banks in Jordan, In addition to the existence of proper operational risk management procedures and practices in a medium degree at these banks. The study presented many recommendations such as: necessity of enforcing the application of internal control elements according to COSO’s framework by commercial banks in