Measuring Operational Risk in Brazilian Credit Unions
DOI:
https://doi.org/10.16930/2237-766220253536Keywords:
Cooperatives, Operational risk, Observable proxiesAbstract
The objective of this study is to propose observable proxies to measure operational risk in credit unions. This work is significant for several reasons: it enhances transparency by utilizing publicly accessible metrics, enables comparisons between institutions facilitating the identification of best practices and areas for improvement and promotes financial stability by evaluating performance over time, contributing to effective operational risk management in the cooperative sector. Based on a systematic literature review, the results demonstrate that it is possible to measure operational risk in credit unions without access to internal information. These proxies can be tested by cooperatives, improving decision-making processes in risk situations and fostering debate among researchers. The study's implications include increased transparency in the sector, greater trust from members and the public, support for regulators in identifying weaknesses in the cooperative financial system, and broadening the discussion on operational risk measurement. Unlike studies that rely on internal data, this work offers proxies that enable comparability and sectoral analysis.
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