The Construction Of Enterprise-wide Risk Management System In Core Of RAROC For Commercial Bank

With China's accession to the WTO, commercial Banks of china will fully integrate into the world financial markets.They will compete with the international first-class commercial Banks at the same stage, and it will face a variety of business risk. In addition, the subprime crisis frequently massive financial crisis outbreak,and it make people gradually realized the risk management is important in commercial bank management, the ability of risk management has become commercial bank in our country. In order to shorten a gap between our country and the international first-class commercial Banks, and keep up with the pace of development of world banking.The commercial banks of our country establish the overall risk management system has become a urgent need in open international financial market survival,development and expansion.our country's commercial bank only paying attention to assets and liabilities management and neglecting capital management. Adopt international advanced commercial Banks of experience, it has formed a RAROC as the core of the commercial bank risk management system. RAROC (Risk-Adjusted Return on Capital) is a size which make the returns and risk tied directly, and provide standard basis for commercial bank management.The first part of this text elaborates commercial bank enterprise-wide risk management connotation, production and development on the basis of the comparison and analysis of the difference between enterprise-wide risk management and traditional risk management and the COSO committee formulated by framework of enterprise-wide risk management was formulated by COSO committee. The third part analyzed Chinese commercial Banks' risk management status and enterprise-wide risk management system existing problems, The fourth part, in the above theory and analysis,we constructed enterprise-wide risk management system for commercial bank.