The operational risk management (ORM) forms an integral part of the monitoring mechanism of banking industry all over the world. The banking institutions uses the latest methodologies and technological innovations to mitigate the operational risk impacts in the banking sector. The rules and regulations of the regulators keeps changing to ensure a better monitoring mechanism towards the rapid and evolving change in the products and services. This article aims to discover the recent issues and challenges in bank’s operational risk management. Using a protocol of systematic literature review, this article provides on a list of common issues and challenges encountered by the banking industry. Based on 26 selected articles, out of 30,000 identified articles from the Scopus database, previous researchers have consistently point out three common issues encompassing (i) regulatory development and compliance, (ii) technological innovation and digital transformation, and (iii) determinants of operational risk. The article concludes on several significant recommendations to remedy the issues and challenges and consequently reflect the dynamic nature of operational risks and the need for continuous innovation in risk management practices.