UK retail banks revolutionize operational risk mitigation, safeguarding financial stability.
This article investigates how UK retail banks manage their operational risks to prevent financial losses. Operational risk includes problems with internal processes, people, systems, and external events. The study looks at how banks set aside capital to cover these risks and ensure they are managed effectively. The research involves studying different departments within banks to understand how they make decisions to mitigate operational risks. Multiple case studies were used to identify common practices in operational risk management.