The Study On The Operational Risk Management Of China's Commercial Bank

Operational risk had existed in a long history, operational risk cases occurred each year to bring a heavy shock to commercial banks, in particular in recent years, the frequent occurrence of major and important cases of operational risk lead to commercial banks irreparable loss, and even bankruptcy. Theory and Practice of the international financial sector committed to the operational risk management research in recent years. Since 2004, Basel Committee on Banking Supervision (BCBS) calls for the introduction of bank regulatory capital requirements for operational risk in the New Basel Capital Accord (BISⅡ), and gives clear operational risk definitions, classification, lead each country's regulatory authorities and commercial banks have paid attention to the operational risk management and prevention. There are many cases of operational risk occur in China every year, it brought to different degrees of loss on the economic and reputation to commercial banks. Commercial Bank of China research for operational risk is still in the initial stage, management is still at a low level, it haven't form a more perfect system of operational risk management framework, defective internal control mechanisms, many loopholes on risk management,which have led to operational risk management exists huge gap compared with developed countries. Because of less developed operational risk management of commercial banks can not meet the operational risk management and prevention of the urgent requirement, therefore, strengthen our commercial banking operation of risk management is imperative. Full-text is divided into four parts:The first part is the introduction to the article, this part introduces the research background, research significance and methods,domestic and international research on operational risk management, innovation and defect. The second part is about defining the meaning of operational risk, mainly related to an overview of operational risk, including the definition, classification and characteristics.This paper introduces the Basel Committee in the New Basel Capital Accord in the definition of operational risk, the type of operational risk losses.The third part is the key part, this part focuses on data analysis, the paper describes a large number of domestic and international operational risk loss data, and analyzes their type of loss characteristics. This article describes the foreign status of operational risk losses respectively, the foreign section describes some representative cases of operational risk in the international areas in recent years, and especially for the Federal Reserve and U.S. regulatory agencies jointly conducted a "loss data collection exercise", the research project collected a number of operational risk losses in recent years, summed up the loss on the risk characteristics of the foreign commercial banks. Domestic part firstly quote typical case of operational risk—the "GaoShan case", describe commercial banks currently operating risk of losses.Then from a single bank and the financial and banking sector angles, namely Bank of China from 2001 to 2010 the decade of operational risk loss data and the domestic scholars collected from 71 banks in the overall operational risk of loss data, summed up the characteristics of operational risk losses. Finally, Combination of the above conclusions, analyze the deep-rooted reasons of causing the operational risk of commercial bank. The fourth part is the core of this article. For the third part about cause of loss of operational risk, this part gives the corresponding strategies and recommendations. Specifically including commercial banks to improve the overall level of operational risk management, establish a sound internal control mechanism of commercial banks and strengthen internal and external supervision of operational risk. End of the article, the author contact the actual conditions of China, through the domestic and foreign operational risk management framework for comparative analysis, proposed the establishment of operational risk management framework with Chinese characteristics should be noted a few points.