Association between Size, Ownership and Operational Risk Management (Comparative study of Private and Public Banks)

Abstract

The study analyzed the relationship between the size and ownership on operational risk management. The study was conducted in the banking sector of Pakistan and the banks both public and private commercial banks working in Peshawar, Khyber Pakhtunkhwa, Pakistan were selected in the study for the data analysis. the objective of the study was to evaluate the banks size effect and separate effect of public and private ownership on operational risk management. The study used quantitative techniques for the data analysis as the variables in the study were quantitative. The data of the variables were collected from the annual reports from their official websites. The study used panel pooled, fixed effect and random effect models for the data analysis. According to pooled OLS and fixed effect models, size of the bank and private and public ownership have significant. As per random effect, size and public ownership have significant while private ownership has insignificant effect on operational risk management in the banks working in Pakistan.