Knowledge Management: A Panacea for Operational Risk?

Purpose - In this paper, the researcher seeks to demonstrate a profound correlation between Operational Risk (OR) that subsists in Banking industry and Knowledge Management (KM). The researcher aims to provide empirical evidence with regards to whether (KM) mitigates (OR) or has no considerable effect on OR. Design/methodology/approach - We propose an approach where the variables under study; along with their distinct dimensions, will be subjected to Factor-analysis. Further testing will involve linear regression model to obtain verifiable results. Originality/value - Adopting KM techniques in a bank will culminate operational risk, which will ultimately lead to amplified return on investments and, hence; improved profitability Practical implications - The findings verify that KM mitigates OR. Hence, management must strive to implement KM techniques throughout the whole organization in order to alleviate OR; provided that operational risk cannot be entirely purged.