THE RELAT？ONSH？P OF OPERAT？ONAL R？SK MANAGEMENT AND THE F？NANC？AL R？SKS THAT AR？SED ？N THE BANKS A CASE STUDY FOR TURK？SH BANK？NG SECTOR

This study was conducted on Turkish banking sector to find the relationship between operational and other nonsystematic risks. According to the main objective of this research credit risk, liquidity risk, and financial risk may has direct and indirect relationship with operational risk. The main goal of this research was to find out the relationship of operational risk management and other risks that may arise within banking systems. The reliability analysis results of the research was 0.889 which means there is strong and possitive relationship among variables. The factor analysis indicated a KMO & Bartlett’s value of 0.755 which indicate that we can use the factor analysis for this research. The factor analysis resulted in three following factors: 1- decrease the long term transaction risks and increase the porducitvity factor. 2- minimize the financial crises in banking sector facrtor. 3- Support the banking financial system to be sufficeint factor. Acoording to the correlation coefficeinct anlysis if banks do not implement operational risk management, the level of thier long-term transcation risks will increase, their output and effeciency will decrease, and as a resul the chance of financial crisis within banking system will increase. Implementing operational risk management in banks will minimize potential risks and strengthen the finanical system of banks