Determining operational risk in banking sector

Operational risk can be defined as the risk of monetary losses resulting from inadequate or failed internal processes, people, and systems or from external events.Managing such risk is becoming an important feature of sound risk management practice in modern financial markets.Banks must ensure and develop their operational risk process for managing operational risks and arrangements having regard to changes in institutions? risk profiles as well as external market developments.In recent years, the fluctuations based on operational risk at banking sector and as a result of these fluctuations the great loss in the sector has increased the importance and the currency of operational risk determination,measurement and management.After the great loss in the sector, it is vital that there should be team work, colloboration and new arrangements. Developing suitable processes and strategies to operational risk management is directly connected with determining operational risk on time and correctly.Especially the arrangements of Basel Banking Committee about the operational risk has showed its effect not only in Europe but also in Turkey.For this reason the quick adaptation duration for BDDK's. Studies in Turkey and the arrangement of the Banking Law are important. And this rapid adaptation can be made with determining reasons of operational risk,expanding suitable strategies to reasons and increasing the quality of the current studies.