LEGAL RISK IN BANKING OPERATIONS

Abstract

This paper analyzes the legal risk in the banking operations and the necessary
steps for prudent management of this kind of risk.
These paper consists of five (5) parts, that are:
1. Introduction;
2. Operational risk in banking;
3. Legal risk in banking;
4. The management of legal risk; and
4. Conclusion.
In the first part: “Introduction”, we define and explain the subject of our research.
In the second part: “Operational risk in banking”, we analyze the concept and the
management of the operational risk.
In the third part: “Legal risk in banking”, we analyze in detail the legal risk and
individual variations through which it is manifested in the banking operations.
In the fourth part of this paper “The management of legal risk”, we analyze the
process of managing the legal risk.
Finally, the fifth part of this paper is the “Conclusion”, in which we are giving our
basic conclusions that arise from our paper.
The management of legal risk in the future should include implementing the
policies, structures, processes and culture that are directly aimed at building effective
management of potential opportunities for minimizing the legal risk. In the Republic of
Macedonia, the future compliance of the commercial bank with current legislation should
provide protection and elimination of all consequences that may arise as a result of noncompliance and improper application of the regulation.