Managing operational risk in banks

Recent years have emphasized focus on risk management, and it became clear that there is an urgent need for a robust framework to effectively manage risk. The financial and economic crisis showed the importance of a strong risk management process and forced banks to take a critical look at how they manage risks. Romanian banking system has known significant changes determined by the implementation of Basel II requirements. These requirements determined an important effort of the banks to improve their risk management process. Operational risk is considered a significant risk and has an important impact on banks activity and results. Now, there is a clear effort of the banks for applying more advanced methods on opera-tional risk so that their control and management to be improved. The present paper presents the specificity of the operational risk management and the author’s solution for the operational risk man-agement in banks."