Research On Operational Risk Control Of Commercial Bank Based On Risk Conduction Theory

The banking industry is a high-risk operating profession. So, guarding, managing and controlling risk is always a research project of the banking industry development. Nowadays, vast loss caused by operational risk is very common to commercial bank all around the word. As one of the three main risks of commercial bank, operational risk catches more and more attention of the public. People abroad have received certain achievements on the study of operational risk control. However, since the risk data is difficult to measure and collect, the internal risk control mechanism is not perfect and the information disclosure is not sufficient, the level of operational risk management in my country is inferior to that aboard. Research of risk conduction is a new project rises in recent years. Though research about risk is abundant home and aboard, research about risk conduction is quite sparse.Firstly, this thesis gives a summary of operational risk and risk conduction, including the research status home and aboard, context and method of the thesis and so on. The next part introduces the fundamental theory. The author firstly presents the connotation and features of operational risk in commercial bank. According to the reason of risk, the author divides the risk events into seven categories:internal fraud, external fraud, employment contract and security of work place, client, product and business indeed, vitiate of physical assets, service interruption and system down, and management of delivery processes. Then, the author presents the theory of risk conduction to lay a foundation for the following research, including its connotation, the four key inscapes and key issues in the conduction process. The following three chapters analyze how to control operational risk from the following four aspects:risk source, risk carrier, risk conduction path and risk receptor.In risk source term, the author uses two methods to explain risk control. One is to draw a risk map, which is a qualitative method, while the other is a quantitative method-score card. On risk conduction path level, establishing a risk warning mechanism is a useful method. Basing on Bayesian network theory, the author constructs the operational risk warning mechanism and takes human risk for example to explain the model. When it comes to risk carrier, the author divided risk carrier into three kinds:human carrier, information carrier and technology carrier, and analyzes the reasons, manifestations and bank's solutions respectively. The last factor is risk receptor. And on this level, the thesis sets up an internal control system to coping risk and analyzes the five steps of the system. The last part summarizes the full text and looks forward to the research.To effectively and efficiently control the operational risk is not easy and there is still a long way for us to go. This thesis studies risk control from the aspect of risk conduction theory. And the author hopes it could do something to enrich the research of risk control.