| Summary: | 碩士 === 國立臺北大學 === 國際企業研究所 === 100 === This thesis display the importance of operational risk management for the efficiency of Taiwan banks, demonstrating that by applying risk managerial strategies, banks can improves their performance, soundness and resiliency, measured by its risk adjusted return on capital. To do that a stochastic frontier analysis is applied on Taiwan banks’ data from 2008 to 2010. Our findings show that absorption capability, supervisory review and market discipline improve banks operational efficiency, while sparse governance-risk-management-compliance and opacity boost technical inefficiency. We conclude that the operational risk management system accumulates company’s knowledge and expertise in their business in order to provide the widest and most accurate information for managers and boards so they can take educated decisions accordingly with their risk appetite, management style, special aims and the framework drawn by stakeholders concerns, therefore Taiwan banks should consolidate the industry, raise the aggregate assets, strengthen its own capital, expand its knowledge and operational risk management skills, upgrade its operational risk assessment approach to advance model approach, integrate foreign investors, develop service-driven supervisory culture, evolve into transparency, keep high levels of capital buffers, work to maintain good credit ratings and uphold market confidence. Governmental should protect the public order and safety focusing on reducing asymmetric information, balancing external costs and compensations, producing and administrating public goods and services, and avoiding excessive interventionism.
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