Analysis Of Enterprise-risk Management And Supervision System In Commercial Bank: Study Of International Experiences And Appliance In China

Under the new fashion of the development of the international financial industry, and with the implementation of the New Agreement of Basel, the ability of the risk management which has been highly concerned in the commercial banks should be enhanced in furgher step. The capability of risk control has become the core which in relation to the survival of a particular bank under the fierce competition in the bank industry. Also, the mechanism of the risk management as a key factor which will inscribe the bank's capability of the risk control must be coincident with such new fashions and requeste. All these need the commercial banks take a series of innovations and reforms continuously. In this point, the mechanism of risk management of our commercial banks are obsolete in contrast to the foreign banks, the reforms are urgent and necessary.Banks and banking regulators around the world take importance to risk management. The Basel Committee on Banking Supervision which established by Group Ten developed and revised the Basel Capital Accord, it implies the theory of comprehensive risk management and is the direction of current banking risk management. But several years after full implementation of New Capital Accord, the Subprime mortgage crisis come from financial sectors in U.S.A. and Swept across the world. Curiously, the United States, a country has the most rigorous risk management system, never slightly notice and prevent before the crisis! We should think how the subprime mortgage crisis is formed, and what is difference between the crisis and previous, and whether existing risk management systems ignore some of the important risk factors, etc.With the development of the chinses economy and the protection of state owned banks has expired, the Chinese commercial banks will confront with the fierce competition in the international financial industries. At the same time, some of the state owned banks and other bank companies have carried out initial public offerings in the capital market. Such activities can be regarded as the newly phase of development in Chinese financial industry and also give the higher demands for the financial risk management and relevant regulations. Therefore, in order to cope with such cut-throat competition and to shape our own characteristic, the chinses banks should positively take the foreign banks'advanced experiences in risk management and improve our own system. Only by this can enhance our own capability in risk control system. So, recalling the commercial bank risk management theory, analysis the causes and impact on the banking industry based on financial crises in recent years, and creation of more effective risk management system are useful theoretical and practical issues.This article, based on financial crises in three decades, rethinks risk management of commercial banks in china, and analyzes the current situation and weakness about commercial banks in china. Research questions:The reasons for the formation of commercial bank risk, analysis of the status of commercial banks and the main problems internal control and regulatory perspective, further study for warning on China's Banking Risk system, recommendations about internal control and supervision of commercial banks in China.This article has carefully reviewed the relevant literatures and picked out some useful experiences in risk management from the papers, such as the frame of risk management, the procedures and the operation mechanism in risk control. Such experiences and theories are all from the international commercial banks which the papers studeied on them. In turn, the writer analyse the internal risk control and external supervision in Chinese banks'system to study the mechanism of risk management and to shown the problems that have existed in china's commercial banks. And against the shortage about China's banking regulatory agencies to control and early warning capabilities, the writer establish the early warning system which consists of macroeconomic risk early-warning model and single bank risk early-warning model. Through the study, the writer comes to the ideas and strategies for furgher improvement in the risk control in china's commercial banks.