Keshar Singh KhattiBhandari, Pratibha2026-02-262026-02-262024https://hdl.handle.net/20.500.14540/25717The study employs a quantitative research approach using descriptive and causal comparative designs. Data were collected from 400 employees of commercial banks in Nepal through a structured questionnaire. Statistical analysis was conducted using SPSS, applying descriptive statistics, Pearson correlation, and multiple regression techniques. The theoretical foundation of the study is built upon the Basel Framework, Risk Management Theory, and the Three Lines of Defense model. Findings reveal a strong and positive relationship between ORM practices and institutional performance, with operational risk monitoring and controls having the greatest influence. Other dimensions—risk assessment, identification, and training also contribute significantly. Despite these advancements, gaps remain in proactive risk analysis, training consistency, and integration of ORM into strategic planning. The results suggest that Nepalese banks can enhance performance by adopting more structured, data driven, and forward-looking ORM systems. This study contributes valuable insights into the strategic role of ORM in the financial sector and highlights the need for continuous improvement in risk governance. It concludes that effective operational risk management is vital not only for compliance but also for achieving sustainable growth and customer confidence in Nepal’s evolving banking environment. The study employs a quantitative research approach using descriptive and causal-comparative designs. Data were collected from 400 employees of commercial banks in Nepal through a structured questionnaire. Statistical analysis was conducted using SPSS, applying descriptive statistics, Pearson correlation, and multiple regression techniques. The theoretical foundation of the study is built upon the Basel Framework, Risk Management Theory, and the Three Lines of Defense model. Keywords: Operational Risk Identification, Operational Training and Reporting, Operational Risk Assessment and Analysis, Financial Services.en-USRisk managementManagement techniquesThesis