COMMERCIAL BANKS AND THE REDUCTION OF OPERATIONAL RISKS IN INVESTMENT ACTIVITIES

Аннотация

Operational risk poses significant challenges to commercial banks, especially in the context of expanding and increasingly complex investment activities. This study examines how commercial banks identify, manage, and mitigate operational risks associated with their investment operations. Drawing on both qualitative and quantitative data from selected banks, the research explores the role of governance structures, technological innovations, regulatory compliance, and internal controls in reducing risk exposure. The findings indicate that institutions with integrated risk management systems, robust digital infrastructures, and strong compliance cultures are more resilient to operational disruptions. Furthermore, the study highlights the impact of international regulatory standards such as Basel III and the growing use of artificial intelligence and automation in minimizing human error and fraud. The research contributes to the existing literature by offering a comparative view of operational risk practices across different banking environments and proposing recommendations for enhancing risk resilience in investmentdivisions. Keywords: Commercial banks; Operational risk; Investment activities; Risk management; Basel III; Financial compliance; Risk governance; Digital banking; Automation; Internal control systems