The Risk of Operational Incidents in Banking Institutions

Isaic-Maniu, Alexandru and Dragan, Irina-Maria (2009): The Risk of Operational Incidents in Banking Institutions. Published in: Reliability: Theory & Applications , Vol. 1, No. 1(16) (15 March 2010): pp. 72-84.

Abstract

Banking-financial institutions are organizations which might be included in the category of complex systems. Consequently, they can be applied after adaptation and particularization, in the general description and assessment methods of the technical or organizational systems. The banking-financial system faces constrains regarding the functioning continuity. Interruptions in continuity as well as operational incidents represent risks which can lead to the interruption of financial flows generation and obviously of profit. Banking incidents include from false banknote, cloned cards, informatics attacks, false identity cards to ATM attacks. The functioning of banking institutions in an incident-free environment generates concern from both risk assessment and forecasting points of view.

• Item Type: MPRA Paper
• Language: English
• Keywords: operational risk, banking reliability, complex systems, incident probability, the risk of functioning interruption
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill

References

Bârsan-Pipu, N., Isaic-Maniu, Al. & Vodă, V. Gh. 1999: Defectarea. Modele statistice cu aplicaţii, Bucharest, Editura Economica.

Bârsan-Pipu, N. & Popescu, I. 2003. Managementul riscului. Concepte. Metode. Aplicaţii., Braşov, Editura Universităţii Transilvania.

Blischke, W., R. & Murthz, D. N. P. 2000. Reliability. Modeling, Prediction, Oportunization., New York, John Wiley and Sons Inc.

Burr, I. W. 1942. Cumulative frequency functions, Annals of Mathematics and Statistics, 13: pp. 215-232

Cohen, L. 1998. Multidimensional Systems and Signal Processing, vol. 9, Issue 4

Deming, W. E. 1965. Principles of professional statistical practice. Annals of Mathematical Statistics, vol. 36, no. 6: page 1883 - 1900.

Dorin, Al. C., Isaic-Maniu, Al. & Vodă, V. Gh. 1994. Probleme statistice ale fiabilităţi. Aplicaţii în cazul sculelor aşchietoare, Bucharest, Editura Economica.

Dragan, I. 2006. Caracterizarea statistică a riscului, Bucharest, Editura Academy of Economic Studies.

Fréchet, M. 1927. Sur la loi de probabilité de l'écart maximum, Annales de la Société Polonaise de Mathematique, vol. 6: pp. 93-116.

Fisher, R. A. & Tippet, L. H. 1928. Limiting forms of the frequency distributions of the largest or smallest member of a sample, Proc. Cambridge Philos. Soc., 24: 180-190.

Gertsbakh, I. 2000. Reliability Theory with Applications to Preventive Maintenance, Berlin, Springer – Vwerlag.

Gnedenko B. V. 1943. Sur la distribution limite du terme maximum d'une serie aleatorie, Annalia Mathematica 44: pp. 423-453.

Gnedenko, B. V., Beleaev I. K. & Soloviev A. D. 1968. Metode matematice în teoria siguranţei, Bucharest, Editura Tehnică.

Isaic-Maniu, Al. 1983. Metoda Weibull. Aplicaţii. Bucharest, Editura Academiei Române (LCCN Permalink: http://lccn.loc.gov/85134196; The Library of Congress USA).

Isaic-Maniu, Al. & Vodă, V., Gh. 1997. Manualul Calităţii, Bucharest, Editura Economica.

Isaic-Maniu, Al. & Vodă, V., Gh 2005. On a Homographic Distribution Function, Economic Computation and Economic Cybernetics Studies and Research, no. 1-4: pp. 11-18.

Isaic-Maniu, Al. & Vodă, V., Gh 2008. Some Comments on an Entropy – Like Transformation of Soleha and Sewilam, Economic Computation and Economic Cybernetics Studies and Research, no. 1-2: pp. 5-11.

Isaic-Maniu, Al. & Vodă, V., Gh 2008. Modelul invers Weibull. Aplicatii, Economic Computation and Economic Cybernetics Studies and Research, 2: 29-37.

Isaic-Maniu, Al. & Vodă, V., Gh 2009. Some Inferences on the Ratio Average Lifetime / Testing Time in Acceptance Sampling Plans for Reliability Inspection, Risk Analysis: Theory & Application, Electronic Journal of International Group on Reliability, Vol.2, No.3 (14): pp. 51-58

Isaic-Maniu, Al. & Vodă, V., Gh 2009. The Poisson Property in the Case of Some Continuous Distributions, Revista Romana de Statistica, no. 2: 56-64.

Johnson, N. L. & Kotz, S. 1970. Distributions in Statistics. Continuous Univariate Distributions, vol. 1, Boston, Houghton-Mifflin.

Johnson, N. L. & Kotz, S. 1983. Encyclopedia of Statistical Sciences, New York, John Wiley and Sons.

Pearson, K. 1895. Contributions to the Mathematical Theory of Evolution. Skew Variation in Homogeneous Material., London, Phil. Trans. Royal Society

Perote, J. & Del Brio, E. B. 2006. Multivariate Gram-Charlier Densities, Universidad Rey Juan Carlos. Dept. de Economía Aplicada y Fundamentos del Análisis Económico, Fac. de Ciencias Jurídicas y Sociales

Pollard, A. & Rivoire, C. 1971. Fiabilité et Statistique Previsionelles: Méthodes de Weibull, Paris, Eyrolles.

Savageau, M. A. 1982. A Suprasystem of Probability Distributions, Biomedical Journal 24: pp. 323-330

Soleha, El-Moniem, M. & Sewilam, A., Imam 2007. Generalized Rayleigh Distribution Revisited, http://interstat.statjouruals.net/YEAR/2007/abstrats/0702006.php-3k-z.

Vodă, V. Gh. 2009. Some Comments on Statistical Risks, Risk Analysis: Theory & Application, Electronic Journal of International Group on Reliability, Vol.2: pp.121-127