The process of loan concession requires a thorough knowledge of the credit institution standards and regulations. Complexity of the credit granting process can cause a considerable number of undecided corporate loan proposals due to incomplete information or decided only after several internal incidents have been reported and solved. The objective of this research is to study operational risk failures in the admission process of financing. With a sample of 5,900 corporate financing proposals during the second semester of 2019, the ratio of OR incidents of 24% detected in the sample hinders the activity of all those involved in the credit risk analysis and decision. The results reveal a measurable effect in profit margin, and on the operational incident recovery period within admission of credit risk. It also shows the growing importance of OR management and how different OR events can affect bank returns.

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financing,financial institutions,risk management,operational risk,OR,credit risk.