Abstract:
Operational risk has adverse effect on financial performance and business
sustainability of commercial banks. This concern has provoked the need to assess
the effective means of dealing with bank operational risk. The study sought to
empirically evaluate operational risk management of commercial Banks in Ghana.
Using descriptive analysis to examine data sourced from 32 commercial in Ghana,
the study found minimal comprehension of operational risk prerequisites, lack of
systematic risk identification procedures and minimal risk assessment. The study
also found that development of active methods of risk monitoring and control
were not pronounced among the commercial banks in Ghana. It is therefore,
recommended that the commercial banks should inculcate the culture of risk
awareness, proper risk identification mechanisms and widespread risk monitoring
and control approaches as these have far-reaching implications for effective
implementation of any operational risk management efforts of commercial banks.
