The Research On Internal Measurement Approach In Operational Risk Management Of Our Commercial Bank

New Basel Accord, issued by Basel Committee on June 26th, 2004, which brought operational risk into the framework of capital adequacy ratio, and required financial institutions to operate the corresponding capital for operational risk, operational risk numerical management will be important area of bank operational risk in future .Nowadays, most of Chinese banks are experiencing the transition period to the real commercial banks, with imperfection of internal control mechanism. Operational risk is one of the main risk resources, and the proportion to the risk of commercial banks is far larger than that of international level. It makes the research of measurement and management of operational risk important in China.This thesis studies a method of measuring operational risk—the internal measurement approach, which is applied in our commercial bank. Firstly, it defines operational risk, including the definition evolution, the characteristics and the type of operational risk, and uses generation theory and game theory to analyze the reason of operational risk. Secondly, it introduces the basic elements and the implementation conditions of the internal measurement approach, meaning of applying the internal measurement approach in our commercial bank. Thirdly, according to the requirements of the internal measurement approach, it can find obstacles that applying the internal measurement approach in our commercial bank, there are: the feasibility of implementing the internal measurement approach, unsound operational risk management structure; the difficulty of data collection and processing; the information disclosure gaps; risk management tools and technology gaps. Finally, we put forward some suggestions: to apply the internal measurement approach step-by-step; to improve operational risk management processes; to establish sound risk management organizational framework; to improve the disclosure of information system; to strengthen basic construction techniques.