Convictions, conventions and the operational risk maze: the cases of three financial services institutions
by Anette Mikes
International Journal of Risk Assessment and Management (IJRAM), Vol. 7, No. 8, 2007

Abstract: Making sense of operational risk practices in the financial services sector is a challenge. There is a temptation to explain the wide variety of approaches as a characteristic of the early stage of development in which the genre resides. Based on the evidence of three case studies, this paper explores the mechanisms that guide firms in their choice of operational risk methodologies. First, drawing on Power (2003a)'s notion of calculative cultures, we propose that senior risk officers develop 'personal philosophies' about the 'manageability' of risks. Second, we emphasise the role of institutionalised rules and conventions (Meyer and Rowan, 1977) in the selection and use of operational risk practices. The paper explicates a number of conventions that are being institutionalised in the operational risk area. The case studies draw attention to the conflicts between the demands of these multiple conventions, and how organisations struggle to resolve them.

Online publication date: Tue, 02-Oct-2007

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Risk Assessment and Management (IJRAM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com