In this Ph.D thesis, we develop a model framework for assessment of operational risks, in four stages. We start with a process flow chart detailing sequence of actions and an overview of the model framework at a glance. We show in this process flow chart key steps for identification and specification of important treasury activities, sub activities, decisions making points etc. Then we develop a basic framework for identifying KRIs with respect to risk sensitivity and severity. After this KRI framework, in the third step of the model, we propose a comprehensive framework showing relationship among various operational risk contributing factors- people, process, systems and external events, their strategy, structure and execution for controls, checks and balances, internal and external changes. Since our research results show people as the most important risk-contributing factor, we develop, in the fourth and final step of the model a framework for identifying and mitigating people related operational risk factor. Thus, we complete our model framework in four stages. The proposed model framework is based on KRIs/RCSA approach, which provides a methodological advantage over the traditional statistical techniques, since in this framework, the qualitative aspects of ORCs viz importance of risk severity, their frequency and relationship among various operational risk contributing factors- people, process, systems and external events can be reviewed frequently and consistently. With this cyclical and concurrent review of all the four stages of the model framework, this may help in understanding the existing risks, known risks, unknown risk, misses, near misses, present threats and future risks and the like and based on these review, risk mitigation techniques can be implemented in time
