Assessment of Maturity of Quality Management System and its Impact on Operational Risk Management in Palestinian Banking Sector رسالة ماجستير

Abstract

The purpose of this research is to examine the effect and relationship of implementing a Quality Management System (QMS) on the Operational Risk in the Palestinian banking sector. Operational risk in organizations is considered the largest part of all risks involved in the banking industry since banks are using numerous tools to mitigate and manage operational risk. On the other hand, implementing a Quality Management System in banks can improve performance, increase efficiency, and increase the effectiveness in processes and services. To investigate the relationship between QMS and Operational risk, qualitative methods were used. A questionnaire was developed and distributed to 14 banks operating in Palestine to collect data. The data were analyzed by using descriptive statistics and regression analysis to evaluate and test the research hypotheses. The research assesses of maturity of implementation of Quality Management System principle in banks and implementation in operational risk practices in the bank. The main results indicate that there is a positive and significant relationship between some dimensions of Quality Management System and operational risk, such as leadership commitment, customer focus, and continuous improvement. The research exhibits a strong effect between quality management system principles (Leadership Commitment, Customer Focus and Continues Improvement Variables) and operational risk management, except some principle because there are some limitations in this study present. VI Considering the results of the research and the positive impact of Quality Management System on operational risk, the management of Palestinian banks may be more confident and encouraged to implement and adopt Quality Management System. This is the first empirical research that studied the impact of implementing Quality Management System on operational risk by combining Quality Management System and Operational risk in Palestinian banking sectors. The study recommends that banks should implement quality management system principles to achieve high performance by reducing operational risks and increasing both efficiency and effectiveness.