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This paper aims to examine the connection between information system (IS) availability and operational risk losses and the capital requirements. As most businesses today become increasingly dependent on information technology (IT) services for continuous operations, IS availability is becoming more important for most industries. However, the banking sector has particular sector-specific concerns that go beyond the direct and indirect losses resulting from unavailability. According to the first pillar of the Basel II accord, IT outages in the banking sector lead to increased capital requirements and thus create an additional regulatory cost, over and above the direct and indirect costs of an outage.

A Bayesian belief network (BBN) with nodes representing causal factors has been used for identification of the factors with the greatest influence on IS availability, thus helping in investment decisions.

Using the BBN model for making IS availability-related decisions action (e.g. bringing a causal factor up to the best practice level), organization, according to the presented mapping table, would have less operational risk events related to IS availability. This would have direct impact by decreasing losses, related to those events, as well as to decrease the capital requirements, prescribed by the Basel II accord, for covering operational risk losses.

An institution using the proposed framework can use the mapping table to see which measures for improving IS availability will have a direct impact on operational risk events, thus improving operational risk management.

The authors mapped the factors causing unavailability of IS system to the rudimentary IT risk management framework implied by the Basel II regulations and, thus, established an otherwise absent link from the IT availability management to operational risk management according to the Basel II framework.

Amid increased size and complexity of the banking industry, operational risk has a greater potential to occur in more harmful ways than many other sources of risk. This paper seeks to provide a succinct overview of the current regulatory framework of operational risk under the New Basel Accord with a view to inform a critical debate about the influence of data collection, loss reporting, and model specification on the consistency of risk‐sensitive capital rules.

The paper's approach is to investigate the regulatory implications of varying characteristics of operational risk and different methods to identify operational risk exposure.

The findings reveal that effective operational risk measurement hinges on how the reporting of operational risk losses and the model sensitivity of quantitative methods affect the generation of consistent risk estimates.

The presented findings offer tractable recommendations for a more coherent and consistent regulation of operational risk.

The purpose of this paper is to assess key issues in measurement and management of operational risk in Malaysian Islamic banks.

Descriptive, analytical, and comparative analyses are used to discuss the issues of operational risk in Islamic bank through the implications associated with the Islamic banks' operational risk as well as the implications on risk measurement, risk management, and capital adequacy.

Discussion on operational risk in Islamic banks is significant and becoming more complicated compared with conventional banking because of the unique contractual features and general legal environment. While basic Basel II core principles of effective banking supervision apply equally well and ideally suit the Islamic banking institutions, risk measurement, and risk management practices still need specific adaptations to Islamic banks' operational characteristics. These particularities highlight the unique characteristics of Islamic banks and raise serious concerns regarding the applicability of the Basel II methodology for Islamic banks.

This study has important implications for the understanding of operational risk, particularly the specific issues of the Islamic banks' operational risk that arise from the different nature of the financing and investment activities of the banks. With regard to measuring operational risk capital charge, the banks have to choose the right and effective method to ensure the operational risk capital charge will be more in line with the banks' actual risk profile and thus will provide the adequate capital and an improved buffer once the losses are announced.

The paper will fill the gap to the existing literature of operational risk in banking institutions especially Islamic banks, by showing the needs of specific adaption of operational risk measurement and risk management practices due to the nature of Islamic banks.

Although the UN Sustainable Development Goals (SDGs) emphasize the importance of leaving no one behind, the opposite is happening for the world's 89 million forcibly displaced people who are mostly left out of SDGs’ reporting and progress. A key reason for this poor outcome is that host country governments plan refugee camps as short-term shelters, but refugees stay in these camps for more than a decade on average due to ongoing conflicts in their home country. This disparity between intent and reality prevents sustainable living conditions for refugee populations. Operational innovations are needed to find sustainable solutions that ensure a higher quality of life and progress toward sustainability in refugee camps.

Through an abductive case study, the authors develop a theoretical framework on sustainable operational innovations for refugee camps. The authors use this framework to analyze four sustainable operational innovations implemented in three refugee camps in Jordan.

The authors develop three research propositions that describe the conditions required for these operational innovations to succeed: they need to include specific needs and cultural preferences of refugees, they must accommodate host governments' restrictions that limit permanent settlement, and finally, technological innovations require careful data management policies to protect refugees. Doing this, the authors account for the broader political-economic and ecological environments that refugee camps are embedded in.

This paper opens a new area of research on sustainable innovation in humanitarian operations. It provides insights into key contingency factors moderating the link between operational innovations and sustainability outcomes. It represents one of the few studies that build their theorizing upon field data collected in refugee camps.

In a dynamic environment such as the supply chain, even basic supplier‐customer systems with structurally simple information and material flow formations have a tendency to exhibit operational complexity. The operational complexity of supplier‐customer systems is primarily characterised by the uncertainty of the system. As the operational complexity of a system increases there is an associated increase in the amount of information required to monitor and manage that system. Based on this understanding, a novel information‐theoretic entropy‐based methodology for measuring and analysing the operational complexity of supplier‐customer systems has been developed. This paper makes contributions in the theoretical, conceptual and practical developments of the methodology. The methodology can quantitatively detect and prioritise operational complexity hotspots. At the interface, the framework can identify and quantify the transfer of operational complexity. Within the internal manufacturing system, the framework provides a comparative operational complexity measure across sub‐systems such as flows and products. This entropy‐based methodology provides a tool for identifying and measuring four classes of operational complexity transfer corresponding to the extent to which organisations generate, absorb, export and import operational complexity.

The purpose of this paper is to understand how logistics service providers manage their operations for sustainable service quality and operational excellence. This study is also trying to propose a framework for measuring service quality index along with some research propositions for analyzing service quality and operational excellence.

The detailed case analysis on sustainable practices of Indian logistics service providers (LSPs) has been done on the basis of case study approach suggested by Eisenhardt (1989). After this case analysis, service quality index is evaluated for the given company based on Cleveland et al. (1989) framework. The SWOT and performance analysis of the case organization has been also done, which is further followed by development of framework and propositions for analyzing service quality and operational excellence for LSPs.

It can be observed from in-depth case analysis that LSPs are making use of green practices to conserve resources for long-term sustainability. LSPs optimize their resources and use sustainable practices in the form of use of reusable and recyclable packaging materials, rain water harvesting, use of solar panels, innovations such as trucking cube, safety concern toward goods and contribution toward environment and society.

Resources optimization and green management practices are essential for LSPs for benchmarking environmental performance and for improving service quality and operational excellence.

This study has tried to analyze green logistics practices for sustainable service quality and proposed a framework for quantifying sustainability.

The objective of this paper is to provide a global perspective of the operational risk (OR) management framework from an internal audit viewpoint.

This paper describes the new role of the internal audit function in reviewing the OR framework.

An efficient OR management framework will improve and reinforce the internal controls of the organization. Internal audit should be alert to the whole process of implementation of the systems for managing OR in entities.

This area has not been analyzed in depth to date. The paper provides a summary guide to audit of OR management frameworks in financial institutions.

The purpose of this paper is to explore and disseminate knowledge about quantum-inspired computing technology's potential to solve complex challenges faced by the operational agility capability in Industry 4.0 manufacturing and logistics operations.

A multi-case study approach is used to determine the impact of quantum-inspired computing technology in manufacturing and logistics processes from the supplier perspective. A literature review provides the basis for a framework to identify a set of flexibility and agility operational capabilities enabled by Industry 4.0 Information and Digital Technologies. The use cases are analyzed in depth, first individually and then jointly.

Study results suggest that quantum-inspired computing technology has the potential to harness and boost companies' operational flexibility to enhance operational agility in manufacturing and logistics operations management, particularly in the Industry 4.0 context. An exploratory model is proposed to explain the relationships between quantum-inspired computing technology and the deployment of operational agility capabilities.

This is study explores the use of quantum-inspired computing technology in Industry 4.0 operations management and contributes to understanding its potential to enable operational agility capability in manufacturing and logistics operations.

This study aims to investigate hazards in theater venues on the performance day by combining operational risk theory with a service blueprint method.

Interviews and Delphi method are applied to find the hazards, then a survey and ANOVA are followed. The study explores a profile of hazards using data from theater venues in Taiwan and examines whether employee characteristics (i.e. professional tasks, experience and working location) affect risk perception.

The study suggests a new framework represented by a 5 (types of loss events) × 6 (service systems) matrix to check operational risks. The analyses indicate two types of hazards: risk perception about performance and operations by performers and crew (RPPOPC) and audience behaviors and safety (RPABS). RPPOPC is related to the core show, but not all employees possess high RPPOPC. Seniors have relatively low RPPOPC, and frontend house employees possess insufficient RPABS. Further, front house employees, seniors and those working in municipal cities show relatively high RPPOPC in high-loss situations.

Managers can use the analytic framework to effectively identify operational risks in the core show operations and audience service offerings. They can promote risk perception considering employee differences and loss severity. However, the framework does not discuss the cause-and-effect relationship. Incorporating a large amount of loss experience into a risk information system would help clarify this complex relationship.

This study contributes to hazard mitigation in the performing arts sector, both in the peripheral services for customers and in the core show services.