Effect Of Operation Risk Exposure On Financial Performance Of Commerical Banks In Kenya

Operational risk is a fast emerging area in banking industry. Awareness of operational risk as a separate risk category has been relatively recent in most banks. It is therefore important to examine the effect of this risk on financial performance of the commercial banks. Unlike market, the operational risk factors are largely linked to internal policies and procedures of the bank. Operational risk in the banks come from different causes, including transaction and execution errors, fraud, improper business practices, product flaws, technology failures, employment discrimination, natural disast…