Entropy Based Operational Risk Management Framework Of Commercial Banks

In recent years, large operational risk loss events of commercial banks occurred Frequently putted the operational risk management of commercial banks on the agenda.Basel Committee on Banking Supervision classified operational risk to the capital charge of Capital Measurement and scope in the new Capital Accord,it demonstrated importance of research and management of the operational risk in commercial banks further.To manage the operational risk on the whole and to build a good risk management framework for the banks is particularly important.Based on summarized the article home and abroad on operational risk management framework and a series of theoretical studies, the information entropy theory is introduced to the assessment and building of operational risk management framework in the paper, and a preliminary exploration of its application is made. Information entropy theory is a quantifier of something uncertain and the uncertainty, it is widely used and cause a fever in the academic. As an important method, maximum entropy method can get the most unbiased loss distribution in the case of lack of the information of the loss distribution. It is important for the assessment and management of the operational risk.