DESIGNING LOSS EVENT DATABASE USING EVOLUTIONARY PROTOTYPING MODEL TO PERFORM BANK OPERATIONAL RISK MANAGEMENT IDENTIFICATION PROCESS N A Hamdani; E Yulianto; G A F Maulani
Universitas Garut;
Universitas Langlangbuana;
Universitas Garut
Abstract
Many banks in Indonesia have failed in the process of transformation towards their vision, due to a lack of awareness in managing risk and not growing a risk-based culture. The external and internal environment of the banking system is experiencing rapid development, which will be followed by increasingly complex risks for banking business activities. The increasing complexity of risks for banking business activities will increase the need for good governance practices and the identification, measurement, monitoring, and risk management functions of banks. Loss Event Database is a solution to perform the purpose of identifying and measuring Operational Risk Self Assessment. The research method used to design and build a Loss Event Database refers to the Evolutionary Prototyping model in which at each stage, the involvement of developers and users is intensely carried out. The implementation of Operational Risk Self Assessment through the development of a Loss Event Database using the Evolutionary Prototyping model can reduce the operational risk rating from the Moderate to Low to Moderate level, meet the requirements of good corporate governance by applicable regulations and best practices in the banking world.
Keywords: Loss Event Database; Operational Risk Management; Evolutionary Prototyping
