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May 9, 2026Review of Pacific Basin Financial Markets and Policies0 citations

Role Of The Leader On The Effectiveness Of Operational Risk Management At The Commercial Bank: The Case Of Vietnam

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YNYen Thi NguyenVinh UniversityHNHang Thi Bich NguyenVinh University

Key Points

  • This research examines how leadership affects operational risk management effectiveness in commercial banks in Vietnam.
  • Quantitative study with a dataset of 300 observations from bank staff with three or more years in risk management.
  • Utilized scale reliability analysis, exploratory and confirmatory factor analysis, and regression methods.
  • Leadership perspective and contingency plans significantly influence operational risk management effectiveness.
  • Factors like organizational structure, ORM process implementation, IT systems, training, and communication also impact ORM positively.

Abstract

The research investigates the role of the leader in the effectiveness of operational risk management (ORM) at commercial banks based on the Basel Committee on Banking Supervision (BCBS). A quantitative method is utilized through the scale reliability analysis, exploratory factor analysis, confirmatory factor analysis and regression with a dataset of 300 observations. The respondent is bank staff with at least three years of experience working in the risk management department of Vietnamese commercial banks. The research results imply that the leadership's perspective and contingency business plan profoundly influence the commercial bank's ORM. In addition, other factors such as organizational structure, implementation of the ORM process, IT system, training as well as communication strongly impact the effectiveness of ORM in the banking business. One of the highlight points is to demonstrate the impact of leadership's perspective on the effectiveness of ORM. These findings play an important role in theoretical and practical aspects, demonstrating the decisive role of the leader in ORM. On that basis, the study recommends enhancing ORM in Vietnamese commercial banks.

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Cite This Study

Nguyen et al. (2026) studied this question.

synapsesocial.com/papers/69fed0abb9154b0b82877b69https://doi.org/10.1142/s0219091526500220
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