Implementing a Risk Management Framework in Developing Markets

Abstract

This article assesses the status of operational risk management of banks in developing markets in the context of Basel II. The aim of the article is to determine the extent to which risk management staff is prepared to implement a risk management framework in line with international best practice. An African commercial bank was examined using survey data collected in July 2010 from 22 employees. The data were analysed using descriptive statistics. Results obtained indicate knowledge gaps in collecting risk data and the application of risk models as limitations to the implementation of the framework. The results support the commitment of more time and financial resources in up-skilling staff if banks in developing markets are to comply with regulatory requirements as recommended by the Basel Accord.