The Relationship of Operational Risk Management and Competitive Advantages in enhancing the Iraqi Banking Sector

Abstract

The industry of Banking at present is categorized by intensive competition and quick changes in
client expectations, improving regulatory standards, innovation in technology and increased competition.
The review of the literature investigated the relevant studies on operational risk management and the
competitive advantage. The theoretical framework was based on the hypothesis of the resource perspective.
Built on the central assumption which states that, the operational risk management is greatly related to
competitive advantage. The present paper seeks to describe The Relationship of Operational Risk
Management and Competitive Advantages in enhancing the Iraqi Banking Sector (people risk management,
systems, procedures and processes, external risk). This paper followed a quantitative method and applied it
to (144) respondents. To accomplish the aims and to test the theories involved, data were collected by the
questionnaires to the executives, and heads of departments in the Iraqi bank sector. The data were analyzed
using SPSS software. to interpret it. The results of the paper found a range of assumptions and conclusions
are as follows. It was revealed that the increasing interest in handling operating risks and its effect in the
establishment of competitive advantage in the banking industry to boost the banking industry's
competitiveness. The findings also indicated a positive effect on the competitive advantage in operational
risk management variables (people, systems, procedures, and external risks). This Mirrors the potential of
the sector to offer excellent performance as a strong indicator.