The aim of this paper is to explore the potential correlation among operational risk and the profitability of Islamic banks in the MENA region. Different measures for profitability were relied upon in previous studies, however, in this article depend on return on assets and return on equity to measure profitability, and efficiency ratio calculated by operating expenses to total assets to measure operational risk. To achieve this objective, the sample comprises 20 Islamic banks from 12 MENA countries, creating panel data for a period of ten years from 2011 to 2020. The analysis was conducted using fixed effect models. The study will analyze and interpret the findings from two financial performance measures, namely, ROA and ROE to get insights into the banks' overall financial situation and their ability to generate profits from their assets and equity. Using one type of operational risk measured by (efficiency ratio) as an independent variable, along with profitability measures by (ROA and ROE) as dependent variables. These measures had a significant negative impact by the operational risk measured by (efficiency ratio). This means when the operational risk increases, this indicates that the management is not controlling the operations of the bank in the best way and inability or failure of the bank's management to effectively utilize the available resources and assets to generate satisfactory profits. This leads to an increase in the operating expenses and hence a decrease in profitability measures.

This study examines the impact of unsystematic financial risk, including liquidity risk, credit risk, and operational risk, on financial stability in conventional banks listed on the Amman Stock Exchange in Jordan. Understanding and managing these risks is crucial for protecting investors, maintaining financial stability, encouraging foreign investment, and strengthening the financial sector in Jordan. The study adopts a descriptive approach to collect and describe data and utilizes cross-sectional panel data over five years from 2016 to 2021 to establish cause-and-effect relationships between study variables, while controlling for other relevant factors that may influence the relationship. The findings suggest that while liquidity risk may not directly impact financial stability, it remains a critical risk factor that requires attention in risk management strategies. Credit risk has a negative impact on financial stability, highlighting the importance of effective credit risk management strategies to maintain a stable financial system. The study finds that operational risk has no direct impact on financial stability. Still, unsystematic operational risks can have significant implications for individual financial institutions and may indirectly affect overall stability. The study underscores the importance of comprehensive risk management strategies to mitigate the negative impact of unsystematic financial risk on financial stability. Future research may consider analyzing the impact of other types of risks on financial stability.

The study sought to determine how bank financial performance (BFP) was affected by credit risk (CR), liquidity risks (LR), operational risks (OR), financing risks (FR), market risks (MR), in the presence of risk management (RM) as a moderator in conventional and Islamic banks in the Middle East and North Africa. To this end, stratified random sampling and systematic sampling methods were used, with a sample size of thirty conventional banks and thirty Islamic banks from the Kingdom of Saudi Arabia and the Arab Republic of Egypt acting as the unit of analysis. 344 participants that were targeted had completed questionnaires that could be analyzed. The database of the target banks was used to quickly and affordably choose samples. Structural equation modeling was done in conjunction with a tool named Smart PLS 4 (SEM). A 92% reliability coefficient was used to evaluate the instrument's dependability. By assessing study variables using commonly used terminology and consulting with subject matter experts on the research issue, the content validity of the findings was confirmed. PLS 4 was one of the clever analytical approaches used to characterize the study's findings. The following describes the relationship between risk management practices and BFP when utilizing a modified variable (RM): "The study showed that CR does not positively affect BFP in conventional banks when employing a modified RM variable. The study demonstrated that the risk ratio had no positive influence on BFP in Islamic banks using a modified RM variable. It has been established by study that LR has no positive impact on BFP. The study also demonstrated that the LR has no positive effects when the variable RM rate is used in conventional banks. The study's findings demonstrated that the OR does not change when the variable RM rate is used. It is advantageous for BFP in traditional banks. The study discovered that there is a negative correlation between OR and BFP in Islamic banks and that OR has no beneficial effect on BFP when the RM rate variable is included. The study's findings demonstrated a favorable correlation between OR and BFP. The research indicates that in typical banks, FR does not positively increase BFP when employing the adjusted RM variable. The study discovered that there is no correlation between FR and BFP in Islamic banks when the modified RM variable is used. Rather than suggesting a good association between FR and BFP, the results pointed to a negative investigation.

In this paper, we present an empirical investigation to measure the effects of various factors on operating loss in one of major Iranian banks called Bank Mellat. The proposed study of this paper uses a standard questionnaire and distributes it among 57 people who are mainly in top management levels. The questions are categorized into five groups including events related to the processes and methods, events outside the organization, related events within the organization and business disruptions and system failure. The results of our survey confirm that the loss associated with events related to the processes and methods increases operating risk meaningfully, the loss associated with business disruptions and system failure increases operating risk meaningfully and the loss associated with related events within the organization increases operating risk meaningfully. However, our survey do not confirm that the loss associated with events outside the organization increase operating, risk meaningfully. Finally, the preliminary survey of our analysis shows that there is not enough evidence to believe that the effects of business disruption and internal affairs are significantly different from the other event.