Abstract
Operational risk management has becoming more important in the financial industry in the recent years. The reasons for this attention can be attributed to introduction of operational risk into the Basel II regulátory framework and to high losses stemming from operational risk events.
Despite the fact that the new Basel III proposal does not give much attention to this risk, operational risk should not be underestimated. In this paper we present a theoretical background for the use of insurance in banks'' operational management accrding to Basel II rules.
Moreover, we provide empirical analysis of the role of insturance in operational risk management in an anonymous bank located in Central Europe. In conclusion we reject our hypothesis that insurance serves as an effective mitigator of operational risk in case of the researched bank.