Open AccessDesigning loss event database using evolutionary prototyping model to perform bank operational risk management identification process
Author(s) -
Nizar Alam Hamdani,
Erwin Yulianto,
Galih Abdul Fatah Maulani
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1098/4/042008
Subject(s) - event (particle physics) , risk management , risk analysis (engineering) , process (computing) , function (biology) , identification (biology) , process management , computer science , rapid prototyping , database , operations management , business , engineering , finance , mechanical engineering , physics , botany , quantum mechanics , evolutionary biology , biology , operating system
Many banks in Indonesia have failed in the process of transformation towards their vision, due to a lack of awareness in managing risk and not growing a risk-based culture. The external and internal environment of the banking system is experiencing rapid development which will be followed by increasingly complex risks for banking business activities. Loss Event Database is a solution to perform the function of identifying and measuring Operational Risk Self-Assessment. The research method used to design and build a Loss Event Database refers to the Evolutionary Prototyping model where at each stage, the involvement of developers and users is intensely carried out. The implementation of Operational Risk Self-Assessment through the development of a Loss Event Database using the Evolutionary Prototyping model is able to reduce the operational risk rating from the Moderate to Low to Moderate level, meeting the requirements of good corporate governance in accordance with applicable regulations and best practices in the banking world.