TABLE OF CONTENTS

Topic Page #

Executive Summary 01

Introduction 03

Introduction to State Bank of Pakistan 02 - 05

Introduction to Off-Site Supervision & Enforcement Department 06 - 09

Operational Risk 10 - 11

Operational Risk in Light of BASEL-II 12 - 15

Why Operational Risk Occur? 16

How to Reduce Operational Risk 17 - 18

Monitoring of Operational Risk at S.B.P 19 - 23

Banks under Study & their inherent Operational Risk 24

 ABC Bank 24 - 31

 AMB Bank 32 - 36

Suggestions for Improvement 37 - 38

Concluding Remarks 39

References 40 - 41