ABSTRACT

Six Sigma methodology and its tools are becoming very popular for the improvement of key processes of organizations. Companies which try to survive and get a slice from the huge markets in this environment should meet the customer requirements fully and even more than the customers' expectations with zero defects, quick and as the cheapest. By focusing on the improvement of processes on both a strategic and tactical level, Six Sigma has enabled clients to achieve extraordinary financial benefits are achieved by increasing quality, minimizing operation costs, encouraging innovation, deepening customer relationships, and strengthening corporate cultures.

In recent years risk management has turned out to be the key factor that determines the existence of financial institutions. Operational risk has become the main topic of risk management agenda especially after the occurrence of wellpublicized high impact loss event during 1990s. Amid increased size and complexity of Banking industry operational risk has a greater potential to transpire in more harmful ways than many other sources of risk. According to the last proposal by Basel Committee, commercial banks are allowed to use advanced measurement approach for operational risk.