Abstract:
The purpose of the study was to assess the effectiveness of operational
risk management in selected banks in Ghana (UT Bank Ltd, SG Ghana Ltd,
Agriculture Development Bank Ltd and Cal Bank Ltd). The study sought to
find out how effective Ghanaian Banks are managing operational risk since its
inception in Ghana about a decade ago. The data was collected by the use of
questioners and interview guide which help to analyzed and present results in
percentage and frequency tables.
The study also revealed that the cardinal features such as operational
risk identification, assessment, evaluation, and reporting and monitoring as
prescribed by the regulator (BoG) were adhered to by the banks. The selected
banks have also put in place effective measures, controls, procedures and
systems to facilitate operational risk management. The study shown that the
banks, as part of Basel Committee and Bank of Ghana regulations have
complied with GHS 60 million minimum capital requirement, used sound best
practice policy, provided sound operational Risk Management environment.
The banks, in line with the regulator’s requirement have provided seven
percent equity requirement and eleven percent liquidity as prescribed by law.
It was recommended that the banks should periodically review their
operational risk limitations and control strategies and adjust their operational
risk profile accordingly using appropriate methodology which is in line with
their overall risk appetite.
