Research On The Measurement And Management Of Operational Risk Of Commercial Bank

Even though its old history, operation risk of banks doesn't draw much attention until a series of shocking lost events happened in 1990s. Despite the operation risk gains the recognition as credit risk and market risk, the research on it haven't revolutionized into a perfect theory system currently, which happens to be the main purpose of this article.Combined with the domestic situation, the article agrees with the theory of British Bankers'Association after comparing the definition of operation risk between The Basel Committee on Banking Supervision and British Bankers'Association. The paper argues our commercial banks operation risk elements mainly include stuff members, procedures, system and outer environment based on the angel of risk. Meanwhile, a detailed definition is offered, after which the domestic bank operation risk is fond primarily caused by stuff members through the collected data on lost events. Then the operation risk element of stuff members is calculated though LDA together with available measure methods and intensive computation of insurance model. Afterwards, the result shows that the economic capital equipped to the stuff members element which amounts to11,136,513,736RMB could offset 99.9% unexpected lost based on the Gamma Translate distribution.Then the article analyzes the mechanism of this element from the angel of stuff themselves and management flaws, and separates the element into mistaken behaviors and intended behaviors. The operation risk of stuff element is doom to cause by the integration of management flaws and stuff behaviors. Based on the analysis of operation factors, the article finally gives several advices such as release the moral risk, commercial bank risk management culture construction, perfect the organization structure of the company as well as strengthen the inner control system of the accounting settlenment.