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A Study Of Management Of Operational Risk Of State-holding Banks Based On Performance Appraisal

Posted on:2014-01-28Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y B GuoFull Text:PDF
GTID:1229330398451758Subject:Finance
Abstract/Summary:PDF Full Text Request
Commercial Banks all over the world suffered operational risk more frequently in recent years,and some even went bankruptcy. So the research on operational risk becomes a hot topic and manyfinancial scholars and practitioners focus on the management of it. Because of the financial crisisand this issue attracting more and more attention, the study on the operational risk is constantlyimproving in Basel Agreement: From never paying attentions to operational risk issues before, nowthe agreement has defined the concept of operational risk, measurement methods of operational riskand even put the operational risk into the capital adequacy ratio calculation formula. Theoperational risk has been attracting worldwide attention now and in the future.The attention to finance operational risk can be traced back to the Ming and Qing dynasties inChina, the thought and effective methods of operational risk management could be seen in study ofthe development of Shanxi Finance Banks. With the continuous development of society anddeepening commercial banking, credit risk and market risk have attracted more attention offinancial scholars and practitioners, while the research on operational problems are neglected overa period of time, however this problem has always existed in the management of commercialBanks. Until the legal case of commercial bank happened frequently in recent years, case, andlargely involves the operational risk, China Banking Regulatory Commission has published“Commercial Banks Operating Risk Management Guidelines" in2007. Author found the most ofthe literature research at home and abroad is mentioned from performance appraisal to manageoperational risks based on the analysis of operational risk problems."From the perspective ofperformance appraisal to study the operational risks management" as a separate research isinfrequent.Especially state-owned holding commercial banks, began to apply and expand the idea of"putting operational risks into the performance evaluation to promote operational risksmanagement” from2010. In2012, optimization study and revision has applied to operational risksmanagement level and performance appraisal status quo of state-owned commercial bank of China.As a result, the researches of combination of operational risks management and performanceevaluation have become the hot point of bank practice. Based on the above research, the paperanalysis and study the operational risk management issues combining management researchapproach, from the perspective of performance appraisal in human resources management research. By analyzing the relevant theory and current operational risks of Chinese state-owned holdingcommercial bank, the author found the close correlation between performance appraisal and theoperational risk management, which is the optimization of the performance appraisal system play akey role in improving the management level of operational risk. therefore, the paper, analyses thecurrent operating risk management of Chinese state-owned commercial Banks and studies humanresources, especially the performance appraisal of Jin-Merchant from the point of Shanxi traditionalexcellent culture. Taking the successful experience of joint-stock commercial bank of China andadvanced ideas of internationally active banks for reference, the paper finds the methods and ideassuitable for state-owned holding commercial banks guarding against operational risks as well asextracts non-financial index system suitable to the development of them, and modified the indexweight of the index.The people involved in the modification of indexes and the weight is relativelycomprehensive: The leadership of branches, business departments (mainly involves client managerand teller), and supervision department staff of the operational risk are all involved in. The theme ofindexes and the weight design is how to introduce the good faith, non-financial indicators of moralconstraints. The indicators regulate the behavior of employees in implementation of performanceappraisal, thus gradually the good faith, cooperation, corporate culture could be formed e in thebank. The operating risk management of Chinese state-owned commercial banks will achieve thehighest level in internal control mechanism. In addition, the paper researches the correspondingsafeguard measures to ensure the implementation of new performance appraisal indexes andweights.This paper provides theory and practice guidance in the research and practice field ofcombination of operational risk management and performance appraisal for state-ownedcommercial banks and other joint-stock banks in China, as well as makes positive contribution tothe cross-over study of management and finance research.
Keywords/Search Tags:Performance Evaluation, State-owned Commercial Bank, Operational Risks Management, PCA Method, AHP Method
PDF Full Text Request
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