On Operational Risk Control About H Bank Based On Internal Control

Operational risk occurs with the developments of commercial bank. In recent years, people gradually realize the importance of operational risk due to the loss of operating risk accidents. Operational risk has become one of the most important fields in global banking risk managements.Because of China's accession to the world trade organization and the rapid economic developments in china, more and more foreign banks joined in China's financial systems since the end of 2006, the more active financial markets brings more opportunities to operational risk, how to prevent and control the operational risk has become China's banking a big problem to be solved. This paper summarized the research situation of the commercial banks operational risk and internal control at home and abroad systematically, then explained the meanings of operational risk, internal control and the relationship between them. Then the paper explains the principal-agent theory, control theory and cost-benefit theory, which were the basic theories of this paper.By the case analysis of a foreign bank, the paper elaborates the overview and structure of H bank, then analyzed the internal control status and operational risk status mainly, pointed out the advantages and disadvantages of its operating risk control status. Then by analying the problems, the paper gave the reasons that why the occurs of operating risk control insufficient, last proposed countermeasures and suggestions like establishing good internal control environment,strengthening risk assessment, perfect operation risk control activities, strengthening the internal control of information communication, strengthening internal supervision and evaluation based on the internal control.