Study Of Risk Prevention Mechanism In Commercial Banks

Financial risks may arouse financial crisis, or even create a tremendous effect onthe macro economy of a country. The purpose of this paper includes the followingparts: (1) With the frequent happening of financial risk cases and the development ofthe financial renovation of the countries around the world, risks have been the focusof human beings. As the main body of the financial system, commercial banks havehigh asset and liability ratio. Restricted by the impersonal factors, commercial banksbelong to the banks with high risks;(2) As for the commercial banks in our country,risk prevention is the basic requirement of their further development;(3) Since thestudy of risk prevention theories needs to be improved, the author of this paper tries tocomprehensively analyze the risk preventions for the commercial banks so as toestablish a systematic and comprehensive prevention model. The meanings of thismodel are as follows: firstly to help solve the long-existing risk matters and to exploreeffective risk prevention mechanism;secondly to help establish better internalmanagement system for the commercial banks so as to standardize the companymanagement mechanism and to improve the performance;thirdly to help establish theall-round mechanism to resist the external compound environment;fourthly to helpstrengthen the supervision of the central bank so as to lead the commercial banks tothe state of standardization and law.The main content of this paper is divided into five chapters: the first chapter isintroduction, briefly presenting the background, purposes, meanings of this paper, andthe domestic and international study in this field, as well as introducing the concept,method and content of this study. In the second chapter, based on the classification ofthe risks of commercial banks, the author summarizes the standing presentation of therisks in commercial banks of our country, and applies economic theories to analyzethe reasons of the risks. In the third chapter, the author introduces the factors of themodel and establishes the systematic and comprehensive model for risk prevention. Inthe fourth chapter, on the basis of the application of the model, the author analyzes thecountermeasures in five aspects for risk prevention in the commercial banks, whichare company management mechanism, internal operation risk prevention mechanism,risk prediction mechanism, law mechanism and auditing mechanism. In the fifthchapter, the author cites Agricultural bank of China as an example, presents the basicsituation of the bank, analyzes the existing problems and the reasons, applies thesystematic and comprehensive model and points out the suggestions for riskprevention of the bank. The last chapter is the conclusion part.On the whole, the main creative points of this paper are the following two: (1) toapply economic theory to analyze the reasons for the risks in the commercial banks;(2) to establish an effective systematic and comprehensive prevention model with theup-down, in-out, macro-micro, short-long, static-activate and inter-operation aspects,to bring forward specific countermeasures to prevent the risks in the commercialbanks, as well as to cite Agricultural bank of China as an example to do case study.