Download to read offline
Uploaded byKleanthis Katsikas
Project Abstract
This document is a dissertation abstract that discusses overcoming flaws in operational risk management in banking through the application of Six Sigma principles. It first describes the literature-based research conducted to understand operational risk management and limitations identified. The most significant limitation found was the lack of a risk culture embedded in all organization levels. It then provides an overview of Six Sigma and applications in finance/banking sectors. The dissertation focuses on addressing the critical limitation of not having a risk culture through a more holistic perspective by enriching Six Sigma with Deming's System of Profound Knowledge and learning organization theories to develop employee awareness and empowerment to help spread a risk culture.
Project Abstract
- 1.
- 2. [1355856](( i( Abstract In thisresearch an attempt is made to confront the weaknesses of operational risk management in the banking sector through the application of the Six Sigma philosophy. The research relied on the literature - based approach in order to understand the process of risk management firstly. A descriptive analysis was made of the functioning of risk frameworks and of the operational risk management under Basel II. The research proceeded to identify the limitations in operational risk management. For greater validity, the research relied - in investigating the problems - on the different perspectives of academics, practitioners and survey findings. The most significant and common limitations, found by the research, have been emphasized and while the most serious weakness proved to be the diffusion of a risk culture in all levels of the organization. This was followed by a description of Six Sigma and a research on some of the Six Sigma applications in the Finance and Banking sector followed by a potential infrastructure connection through the Six Sigma tools. The effort became focused on the possibility of dealing with the gravest limitation of operational risk management, the diffusion of risk culture from a more holistic perspective. At that point the results of the research showed that Six Sigma needs enrichment from other fields in order to reach this goal, being unable to contribute immediately. Subsequently, a connection with Deming's System of Profound Knowledge and the learning organization was proposed for the acquisition of awareness and employee empowerment in order to develop the capacity of Six Sigma to spread the risk culture. ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (