The purpose of this study is to analyze the relationship between operational risk and accounting conservatism. The criterion used for operational risk in this study is asset volatility and for accounting conservatism, we use Ball and Shivakumar (2005) model [Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: comparative loss recognition timeliness. Journal of Accounting and Economics, 39(1), 83-128.], which analyzes accounting from balance sheet sight. The statistical society used in this study is taken from 15 banks in Tehran Stock Exchange over the period 2006-2012. The research result demonstrates that there was a negative relationship between operational risk and accounting conservatism. In other words, there is a significant negative relationship between operational risk and accounting conservatism. Hence, the results suggest that with an increase (decrease) in operational risk, accounting conservatism decreases (increases).

Operating risk is one of the most important components of corporate governance and it is often called the first risk item, which must be detected and managed, properly. The primary objective of this paper is to determine important barriers in implementation of operating risk. The proposed study of this paper is implemented in one of Iranian banks located in province of Semnan, Iran. Cronbach alpha is calculated as 0.9043. The results of the study have indicated that lack of possibility of quantifying operating risk components, unfamiliarity of managers with various methods for measuring operating risk components, lack of sufficient rules and regulations, insufficient information, no regulation for monitoring the implementation of rules and regulations and underestimating importance of operating risk are considered as the most important barriers in operating risk implementation.