Operational Risk and Internal Control in Moroccan Banks: Theoretical Framework and Empirical Perspectives

Abstract

Operational risk management and internal control have become major strategic priorities for Moroccan banks, whose cumulative balance sheet was equivalent to 120% of gross domestic product at the end of 2024 (Bank Al-Maghrib, Rapport DSB, 2024, p. 3), in a context marked by the requirements of the Basel accords, the rise of participatory banks and the accelerated digitalization of financial services. While the relationship between these two mechanisms has been documented at the level of firms in general, its banking dimension, examined through the lens of the Moroccan regulatory framework, remains insufficiently explored in the national academic literature. This article presents a structured literature review aimed at clarifying the theoretical foundations of operational risk and internal control in Moroccan banks, analyzing the regulatory framework established by Bank Al-Maghrib, and determining the nature of the relationship between them. The approach draws on a plural theoretical anchoring as well as the Basel and COSO frameworks. On this basis, the article proposes an original integrative conceptual model structured around four levels of analysis, conceptualizing internal control as a preventive solution and introducing the mastery of operational risk as a mediating variable towards banking performance, under the effect of three moderating variables. The findings are operationalized through six research hypotheses. The scope of this contribution remains exclusively theoretical: these hypotheses are not empirically tested in the present article and will be confronted with the field in a subsequent empirical article.

Classification JEL : G21, G32, M42, G28

Paper type : Theoretical Research