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SALU-Commerce & Economics Review

Ghulam Hussain Bozdar
Muhammad Asif Iqbal
Zulfiqar Ali Rajpar

This study investigates the impact of performance based remuneration plan on operational risk management in Pakistan’s banking sector. The purpose related to the research is to highlight the importance of operational risk management. Literature review reveals that operational risk management has a great role in banking sector, in recent time implementation of Basel II & III the risk management especially operational risk has received reasonable attention in the banking sector. The data was collected from targeted population commercial banks of Pakistan with sample size of 250 individuals. To accomplish the task most important information was gathered through Likert-type scale questionnaire and unsystematic models method were utilized. To analyze the facts arithmetical instrument Multiple Linear Regressions was utilized and shows significance results. This study is limited to some bank branches of Karachi, Hyderabad, Lahore and Islamabad cities which were easy to access for researchers because of restricted monetary assets, scarcity of time and vast geographical location. This research discloses that responsibility of Operational Risk Management is shocking and serious circumstances in banking sector of Pakistan.