In bank industry operational loss can result from a variety of events including fraud, employment practice, process management or system failures. This study aims to offer practical understanding of developing and implementing operational loss database in order to mitigate its operational risks. Far from closely adopting the
requirements and due to the nature of the risks faced by banks, this study investigates and observes how such framework is modified in practice to suit the nature and timing of operational loss database.Using the case study approach of investigation, this study considers a unique and
raw data collected from the bank internal sources from Mongolia. Operational loss data has processed and summarized based on The Basel Committee regulation. The findings will be useful to other banks to benchmark with their operational loss database program for enhancement purposes.

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