Operational risk in banking sector and operational risk processes

The concept of risk has brought new risks to the present day with the increasing competition environment. Although operational risk, credit risk and market risk, which are the most important risks in banking, are still a big problem for banks, they can manage these risks in advance and minimize the risk. In order to prevent losses due to operational risk, regular audits in the banking sector and prior separation of capital are important for banks. The Basel Committee issued Basel I (Capital Adequacy Agreement) in 1988 to improve the market discipline, capital measurement and financial stability in order to reduce the risks of banks. One of the criteria of Basel II capital calculations has been the first country that Turkey. Due to the inadequacy of the Basel I criteria based on credit risk, the Committee re-issued its criteria in 1999 under the name of Basel II. The development of Basel II criteria has helped to reduce the crisis.