Research On The Measurement And Control Of Commercial Banks Operational Risk In China

Operational risk management is a core part of modern commercial bank risk management. Under the background of world finance-economy integration, banking international competitiveness, risk management is increasingly becoming the powerful means of strengthening commercial banks core competitiveness. As the main content of commercial banks, operational risk has also become a forefront and a hot issue in the field of bank risk management in recent years. It promotes the deep research on the theory and practice of operational risk management in the international banking industry.Through the analysis of the reform of the national commercial banks in the transformation, operational risk management in domestic banks is in the early stage. The theoretical research, practical applications and regulation standardization in operational risk management lag far behind the credit risk management and market risk management. The definition, measurement and control of operational risk cannot form a unified theoretical system. The research on types of operational risk, influence factors and risk indicators are lack of identification on standardization and systematization; in the analysis of risk measurement, the application of statistical methods and systems approach contains certain limitations due to short time of practical management and insufficient data. With increasing the world economy integration, the risk banking industry is facing to complexion and changeability. As be answered and resolved questions, commercial banks should strengthen commercial banks operating risk management study, set up a sound and effective operational risk management system as far as possible in order to enhance effective commercial bank internal control and improve risk management completely.In this paper, based on analyzing research results from domestic and international operational risk management, comparing perspective and methods from domestic and foreign scholars and with the actual situation of banking industry, it uses systematic theory, process theory and internal control theory to construct theoretical frame for Commercial bank operational risk identification and measurement. In the process of operational risk management, it is more important to research for risk identification, measurement, and control technology. In the identification of operational risk, it uses small data amount of chaos theory to prove the chaotic characteristic and worse long term predictability in operational risk of commercial bank, however, the chaos can be controlled. Trough the control and induction for chaotic system, it can change the dynamic behavior of operational risk system in order to realize the stability of system, construct risk indicator system of operational risk based on key risk drivers ,identify operational risk exposure and analyze loss characters of commercial bank operational risk. In the measurement of operational risk, based on a self-assessment method, it constructs CVaR model based on peak method in extreme value theory, model where CVaR is calculation for operational risk degree in commercial bank. In the operational risk monitoring, it design the monitoring procedure of operational risk in operation process. It constructs assessment models of operational risk degree based on the combination of fuzzy optimization and BP neural network of L-M algorithm and do the empirical analysis. Moreover, in the operation of risk identification, measurement and monitoring, it proposes the control technology of operational risk, namely the method of the avoiding and expected withholding loss reserve in operational risk. In addition, for non-expected losses, it divides into non-significant losses, significant losses and the loss of disaster. It offers allocated economic capital of all non-significant losses, partial major losses and catastrophe losses at the core of"the degree of operational risk". For partial major losses and catastrophe losses, it should take operational risk release technology such as risk outstanding and insurance, in order to reduce the pressure of economic capital allocation. For partial catastrophe losses, it makes operation-sustained plan and take risk retention technology.In this paper, it is more significant to study on operational risk measurement in the procedure of operational risk management in commercial bank and control theory. In the process of studying, using measure model of CVaR is accurately reflecting non-expected losses and significant losses in operational risk of commercial bank, and using"the degree of operational risk"is clearly reflecting the requirement of economic capital allocation in operational risk of commercial bank. Inserting operational risk management process of qualitative control can satisfy the management requirement of operational risk identification, measurement, monitoring, control and report. It is more useful to enrich and add commercial banks operational risk management theory and methods, resolve some questions in the process of commercial bank operational risk management, reduce commercial banks operational risk management operating cost, enhance the decision-making efficiency, and enhance the core competitiveness of commercial banks. It has an important theoretical and practical significance. As increasing mature theory and technology of China's commercial banks operational risk management, the research results in this paper will have broad prospects.