Operational risk and e-banking

Abstract

Banking involves a variety of risks. Under Basel II, the main risks are the monitored credit risk, market risk, and operational risk. Frequently, operational risks are underestimated, considering that they would not affect the optimal activity of a bank. However, the experience of some credit institutions has shown that operational risk is an important cause of financial losses in the banking sector. Operational risk is generated by a complex of factors that manifests primarily as a result of direct customer interaction with the credit institution. In this context, the provision of e-banking services reduces direct contact with bank customers and thus reduces potential losses arising from operational risk. In sum, we consider it necessary to be aware of the link between operational risk and e-banking services promoted by banks and of the importance of this connection especially in a financial environment affected by the financial crisis.