Developing a Framework of Islamic Bank Operational Risk Management: ‘People Risk’

Aisyah Abdul-Rahman, Zaleha Yazid

Abstract


ABSTRACT

The study of human resource has become a crucial topic in understanding the determinants of operational risk. Given the various sources of operational risk, losses resulting from staff performance seemed to be the major cause as employees are the key players who manage the processes and systems of undesired events. This study explored the influence of staff performance attributes toward operational risk management, with a focus on ‘people risk’. The study was conducted using qualitative approach via face-to-face and telephone interviews with 14 respondents from 7 Islamic banks in Malaysia. Our preliminary finding showed that training, education, experience and compensation lead toward better management of ‘people risk’. Hence, a clear understanding of the factors affecting ‘people risk’ would help ensuring an effective and successful strategy in managing human resources especially in developing the operational risk management framework for the Islamic banking institutions.

Keywords: Islamic banking institutions; operational risk management; staff performance

ABSTRAK

Kajian berkaitan sumber manusia telah menjadi topik penting untuk memahami faktor penentu risiko operasi. Walaupun risiko operasi berpunca daripada pelbagai sumber, kerugian akibat daripada tahap prestasi pekerja yang rendah menjadi punca utama disebabkan pekerja memainkan peranan penting dalam menguruskan aliran proses dan sistem bagi sesebuah institusi terhadap peristiwa yang tidak diingini. Kajian ini meneroka faktor-faktor yang mempengaruhi prestasi pekerja dalam konteks pengurusan risiko operasi dengan penumpuan kepada 'risiko pekerja’. Kajian ini menggunakan pendekatan kualitatif melalui temubual secara bersemuaka dan telefon terhadap 14 responden yang terdiri daripada 7 buah institusi perbankan Islam di Malaysia. Penemuan awal kajian ini menunjukkan bahawa latihan, pendidikan, pengalaman dan ganjaran mendorong kepada pengurusan ‘risiko pekerja’ yang lebih baik. Oleh itu, kefahaman yang jelas terhadap faktor-faktor yang mempengaruhi 'risiko pekerja' membantu dalam merangka strategi yang efektif bagi pengurusan sumber manusia terutamanya dalam membangunkan rangka kerja pengurusan risiko operasi bagi institusi perbankan Islam.

Kata kunci: Institusi perbankan Islam; pengurusan risiko operasi; prestasi pekerja


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