By partnering with the business, the operational-risk discipline can create a more secure and profitable institution. Successful banks embrace risks while developing powerful mechanisms to prevent or manage risk and stay ahead. This study is devoted to the problems of improving the banking risk management, taking into account the new regulatory and technological requirements based on the use of modern technology and combining the latest achievements in numerical mathematics, statistics and information technology. Focusing on literature and by conducting a case study on operational risk management on one of largest retail banks, this paper aims on answering how operational risk management can be improved by implicating risk governance and internal control frameworks. It was concluded that although improvements have taken place in how operational risks are being managed, there is still room for improvements. An intersection of risk type and business/functional area of focus, prioritized based on the business environment is critical when fulfilling this life cycle of risk management activities. When too linear, the steps are not agile enough, so the cycle needs to be performed on a micro-level and aggregated for macro-level insights/risk decision-making. The suggested model outlines the understanding of the safe and prudent management of risks under the current prudential framework. It also demonstrates the ability of appropriate operations management techniques to reduce operational risk losses in the banking industry significantly.