The Causes Of Operational Risk In China's Commercial Banks

Financial markets played an important role in the global economic life and economic development. In particular, the banking financial institution took on increasingly important responsibilities in the world's rapid economic development in contemporary society also faces a more great challenge. The identities of commercial banks determine that they inevitably face many risks including market risk, credit risk, operational risk, etc. Frequent cases of financial losses show that the affection of operational risks is broad and significant. Commercial bank has paid more attention to the prevention and control of operational risk. The Basel Committee and other international financial regulatory institutions have greater emphasis on operational risk, and made a series of regulatory requirements. But because operational risk is endogenous, different commercial banks have their own situations and solutions, and did not form a unified management solution.China's commercial banks are also facing an increasingly serious operational risk, and are showing a difference between commercial banks and foreign features. China Banking Regulatory Commission has give guidance to China's commercial banks for the management of operational risk. In this context, the paper tries to identify the root causes of the operational risk happened in China's commercial banks. We also hope give management plan which is feasible Low-cost and reasonable.Through theoretical analysis and empirical testing, this paper found the roots of the fact that the internal artificial operational risk is frequent. Therefore, in order to fundamentally solve this situation, we must improve the mechanism of commercial banks in corporate governance, including regulation, incentive and balance.Through the improvement of corporate governance mechanisms to control the operational risk are an effective and a win-win initiative. For now, this process can not afford to put an end to operational risk, but it can effectively reduce the operational risk made by the internal staff. A healthy and efficient business environment, also can improve the efficiency of overall risk management in commercial bank.