Operational Risk Management Systems Implementation in Ghanaian Banks: The Critical Success Factors
Keywords:
Critical success factors, Operational risk, Risk governance, Customized risk management process, Operational risk management systemsAbstract
This quantitative study investigates the critical success factors for effective implementation of operational risk management systems in Ghanaian banks. A validated survey instrument was used in the data collection across 30 commercial banks in Accra. Factor analysis was deployed to extract the most critical success factors in testing all eight hypotheses. The Pearson correlation result reveals that independent variables: Risk Governance, Risk Management Policy, Risk Management Planning, Customized Risk Management Process, Risk management Implementation, Risk Management Training, Risk-based Performance Appraisal and Risk Management Culture were positively and statistically significant with effective ORMS implementation in Ghanaian banks. Hence, the eight independent variables were identified as critical success factors for effective ORMS Implementation in Ghanaian banks. The study recommends that top management should invest into the development of comprehensive risk management plans and policies, and to integrate these policies into the overall strategic risk culture for an effective ORMS implementation in their banks. The study made other key recommendations.
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