Banking processing risks and control: A risk-based guide to functions in banking operations and operational risk control - Paperback

by Leo Onyiriuba (Author)

Banking processing functions have assumed greater significance with revolution in the banking industry. The change is not only sweeping but demands innovative standard operating procedures (SOP) for banking processing. Yet risk continues to dominate the new face of banking processing in response to the revolution. Usually banks fall back on SOP for operational risk control. The use of SOP is effective, no doubt about it. That explains why SOP manual furnishes institutionalised guidelines for banking processing. However occasional manipulation of SOP by customers and bank staff alike persists despite internal controls. This fact has two main implications for operational risk management. Neither SOP nor internal control can forestall the observed manipulation all by itself. The reason is simple. Internal control and SOP do not encompass all aspects of risk management techniques in contemporary banking processing. Thus, there is need to strengthen SOP and internal control with other proven operational risk management techniques. That way it becomes more practicable to assure the effectiveness of banking processing. It is with such helpful risk management techniques that this book is concerned. In writing the book, the author adopted a practical methodological framework and analysis. The methodology features the 'what', 'how', and 'why' approaches to investigating causes and effects of a problem. Doing so, the author: -Identified and described particular critical banking processing functions -Explained the usual and practical procedure for carrying out the functions -Stated the reasons for doing the work in a particular SOP-supported ways -Pinpointed controls put in place by bank management to check possible abuses and infringement of the SOP manual -Identified risks inherent in each processing function and measures devised to mitigate the risks -Mentioned and suggested management requirements for mitigating contemporary and evolving banking processing and operational risks. The book is divided into seventeen chapters and covers critical banking processing functions and related operational risks and controls based on foregoing framework. As a practical text, the book fulfils the needs of bankers, analysts, academics and students for a book that sheds light on the workings and outcomes of operational risk management in contemporary banking processing. It is concise, authoritative and informative. With these attributes the book stands out as a good read.

Author Biography

Leo Onyiriuba is a leading banker and author on banking. He ever seeks to proffer solutions to problems which constrain operators and stakeholders in the banking industry. This goal drives his hope to bring about positive changes in the work of bankers that affect ordinary people. Beyond banking, he assists individuals, companies, and organizations to reinvent enterprise, unlock potential, discover possibilities, and find key to success. Onyiriuba started building a voice when, as a budding author, he wrote "Economic policy and economic development in Africa" (2000). He was moved to write the book by a need to transform Africa. His banking series in which he has written four bestsellers builds on this foundation. Soon he became a strong voice of banking in Africa as he published "Analysing and managing risks of bank lending" (2004), "Drive and tasks in bank marketing" (2008), "Dictionary and language of banking" (2010), "Credit risk: Taming a hotbed of reckless banking" (2013), and "On the road to self-actualisation" (2013). Onyiriuba is now a well-known and respected voice in banking circles in Nigeria - and, indeed, West Africa. He commits himself to adding value to the body of banking literature and practice, working to enhance the services of banks, advancing risk management in banking, and helping institutionalize sound banking culture. The present title, "Banking processing risks and control" (2014), is underlain by the need to further strengthen bankers with risk management competences in an age of banking revolution. Onyiriuba started a career in banking in 1991 after a stint as a lecturer in the university. As a banker, he was at various times group head (commercial banking), regional director (Lagos), and divisional director (corporate banking). Presently, he runs a financial consultancy in Lagos, Nigeria - with a commitment to helping clients succeed. He leads a team of enthusiasts for the latest business, finance and banking thinking. The team helps clients build best practice knowledge, institutionalize sound culture, manage risk well, and create value. Born 13 June 1961, Onyiriuba holds undergraduate and postgraduate degrees in business administration and finance.