Munich Personal RePEc Archive

Operational risk and its determinants among five companies in manufacturing industry in Germany

Cipriano, Nur Alisha Arfiffy and Zulkeflee, Nur Nabila and Amran, Fasihah and Shahudin, Haziah Aishah (2018): Operational risk and its determinants among five companies in manufacturing industry in Germany.

[img]
Preview
PDF
MPRA_paper_87013.pdf

Download (843kB) | Preview

Abstract

Operational risk management is an important aspect in an organization to manage operational risk efficiently. Hence, this study intended to investigate the effects of internal and external factor in manufacturing industry towards operational risk. This study employs time series regression analysis of manufacturing industry in Germany from 2012 to 2016. The analysis shows that firm specific factors (average current ratio and average collection period) and macroeconomic factors (the company’s beta) influence the operational risk of the company. This study suggests the company to manage their average collection period by managing their account receivable efficiently through establishing clear credit policies and incorporate more corporate governance elements such as accountability, fairness, independence and transparency.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.