Study On Comprehensive Risk Management Of China's Commercial Bank

Since the full opening up of the financial industry in 2006, the process of our financial industry's entering the global economy has been accelerating, with the accelerated foreign impact. As a result, our banks, which are the core of the financial industry, suffer the challenges from abroad firstly. In such a severe circumstance, it becomes an urgent issue how to improve our commercial banks'core competitive abilities so that they can survive in the global financial tide invincible. As for the commercial banks have high-risk, high debt characteristics, their risk management abilities are highly attended by the banking supervisory authorities, academics and most of the bank customers. When carrying out comprehensive risk management, there is a large gap between the Commercial Bank of China and advanced banks abroad in the legal system constructing, the improvement of management concept and model methods improvement.This paper concentrates on comprehensive risk management problem of Commercial Bank of China, seeks to improve the model methods and make progress in the practical application, which provide a reference for comprehensive risk management of Commercial Bank of China. In the first chapter, this paper describes classification of risks of commercial banks and the current urgency of comprehensive risk management; The second chapter introduces the connotation of comprehensive risk management and distinction with our traditional risk management; The third chapter analyses the characteristics and merits of methods and tools for the current risk management, leads to the multi-dimensional model to improve risk management, and perfect the multi-dimensional model. Then, this paper selects the Annual Report between 2003 and 2008 of China Industrial and Commercial Bank for demonstration analysis. After calculation, this paper analyses and evaluates the risk management measure of Industrial and Commercial Bank of China between 2003 and 2008. In the fourth chapter, against the current status of Chinese Commercial Banks risk management, based on the multi-dimensional model this paper proposes related policy recommendations for comprehensive risk management. Finally, this paper shows the limitations of comprehensive risk management based on multi-dimensional model, and some thinking and exploration for the continued refinement of the model.