Улогата и примената на методологијата за следење и мерење на оперативниот ризик во банките, со особен осврт на банките во Република Македонија

Abstract

The implementation of the operational risk management in the banking system in R. Macedonia is relatively new. The effective implementation of the operational risk management may be considered with the entering into force of the Decision for capital adequacy calculation methodology (“Official Gazette of R. Macedonia” no. 47/2012). The main objective of this research is to explore the effects of the implementation of the operational risk management in the banking system in R. Macedonia. Specffically the mutual effects of the operational, credit and market risk on the financial performance of the banks in R. Macedonia will be explored. Most of the studies on the subject show that the enhanced control of the operational risks leads to increased operational performance in the banks. In opposite, the weaker the risk management structure in the bank, for an example loose criteria for loan approval, the weaker the asset quality which leads to weak profit generating ability of the bank. The analysis in this research will be carried out through an empirical study of the quantitative effect of operational risk on the financial performance of the banks in the Republic of Macedonia, as a measure for perceiving the effects. The basic hypothesis of the research is that operational risk has an impact on the financial performance of banks. The target population of the research is the banking system in the Republic of Macedonia, i.e. all active banks in the period from 2006-2016. The research period covers 11 years, from 2006 to 2016. The results of the research show that the operational, market and credit risks have a significant negative impact on the financial performance of the banking system of the Republic of Macedonia, measured through the rate of return on equity. This research may be useful for improving the risk management policies and procedures, in particular operational risk in the banks. Subsequently, banks can be motivated to invest in research and development of new and more advanced risk management models. Also, the results of this research can be of benefit to the regulator of the banking system for improving the regulatory framework for risk management, having in mind that this research quantifies the strong effect of the operational, credit and market risk on the banks' performance.