The Research Of Operational Risk Management In Banks Of Bayesian Networks

Banks is one of the most risky industries in the world, the eternal theme of development of banks is the preventing, managing and solving risks. Risk management has been the lifeline and central competence of banks, Scientific and efficient financial risk management can guarantee healthy, sustain operation of banking institute. On the other hand, it can lower the capital cost of precaution risk, and enhance enterprise competition.Currently, risks in banking institute can be generalized as market risk, credit risk and operational risk. While. Operational risk is a new branch of financial risk which traditionally refers to credit risk or market risk. At present the management of credit risk or market risk is perfect in most financial institutions, while that of operational risk lags much. As it become more and more concerned, now the management of the operational risk has been much more important in global financial risk management in recent years. In 2001, Basel Committee issued New Basel Capital Accord, which firstly included the measurement and management of operational risk into the framework of risk management and also required that the institutions should hold capital according to the operational risk. This not only indicates that the global finance industry has attach great importance to the practice of operational risk management, but also advances new requests to the financial institution which face pressure. In practice, the measurement and management of operational risk is at its beginning period compared with that of credit risk and market risk.Banks of china will face intense competition in domestic market among international banking institutions after entering WTO, at the same time the operational risk management of Chinese banks is more serious with the opening of the financial industries of china. The increasing of banks risks must make the finance risks expand. Domestic banks also face the real problems leading operational risk management progressively according to the claim of the New...