Dear Reviewers,

We thank you in advance for your comments and suggestions for our paper. We have
made adjustments and improvements to the paper based on your suggestions and
directions. Here we attach the response we did based on your suggestion.
Hopefully our paper can meet the criteria of this review process.
Thank you,
Regards.

Suggestions and Responses:

The aim of the manuscript is to assess the maximum potential losses for digital banking
operations, by proposing a method for this. The topic choice, i.e. the operational risk of
digital financial transactions is of high relevance for the banking sector, however, the
manuscript has methodological issues to be concerned for improvement.
-
Response:
Dear Reviewer,
Thank you for the positive comments and suggestions for this research.

General concept comments

Point 1: Please base the risk classifications on the larger literature. This section is part of the
literature review and should be more extensive. Line 144-148.
- Response:
Dear Reviewer,
Thank you for your comments and suggestions, here are the responses that we have
corrected according to your directions.
We added further exploration of operational risk. We explain more deeply about
digital financial risks. The explanation is written in Page 5 Line 182-191.
“Churchill et al. (2013) [36] revealed that risk is divided into pure and speculative
risks. Speculative risk is further divided into four, namely market risk, credit risk,
liquidity risk, and operational risk. Operational risk can come from processes,
structures, systems, and external factors. This study focuses on operational risks
originating from the system, namely potential losses from digital transaction risks due
to downtime and service timeouts. The risks selection focuses on downtime and
timeout because these risks are the most common in the digital banking system. This
is based on the system's need for maintenance in a period that causes downtime. In
addition, connection problems often occur and interfere with transactions. If this
happens, the system will timeout, because the system loading exceeds the service level
agreement time”

Point 2: The article lacks information on the research sample. There is no specified research
period. There is no information as to why such an object was tested. This is
 unexplained. This information is the basis for researching and evaluating the article.
Please complete this in the article and underline it
- Response:
Dear Reviewer,
Thank you for your comments and suggestions, here are the responses that we have
corrected according to your directions.
We have added some explanation about research sample. We explain about time
period of sample, then we described about the sample of bank in general terms.
The sentence is added in Page 5 Line 209-220.
“This research uses digital banking transaction risk data due to downtime services
and service timeouts. The nominal risk loss data is obtained by simulating the risk
data sample at one of the commercial banks in Indonesia. As for the initial sample
data, it represents the risk of digital banking losses due to downtime and timeouts.
The sample data period is May 1, 2020 to August 31, 2020. Then the sample data
becomes material for digital banking risk simulation. Banking companies as a sample
cannot be mentioned because they are protected by the Law No. 30/2000. The law
regulates company secrets, including information in technology and business.
Confidential company information is an asset that has economic value and is not
known by the public [39]. The characteristics of these banking companies are in
BUKU IV bank group. Based on the Indonesian Financial Services Authority
Regulation (6/POJK.03/2016), BUKU IV is a bank with the highest core capital of at
least IDR 30,000,000,000”