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

Since the five-year protection time for commercial banks is ending, domestic commercial banks are going to face the challenges brought by international banks. The competitions will certainly become more and more fierce. Meanwhile, factors that bring risks to the operation of domestic commercial banks emerge one after another as they're expanding business scope, innovating and applying large-scale derivative financial products. Things are made complicated. In order to subsist and become even more competitive in the complex environment, it's essential for domestic commercial banks to build a sound risk management system. According to this, the way of risk managing being used now, which focuses on the credit risk, does not meet the request any more. Domestic commercial banks should build an enterprise-wide risk management system including credit risks, market risks, operation risks, strategy risks, law risks, floating risks and reputation risks.Taking the COSO "the Framework for an Enterprise-wide Risk Management" and the advanced experience of international banks as reference while considering the actual situation of domestic commercial banks, this essay analyses aspects of building an all-round risk management system including the internal control environment, risk distinguish and evaluate, internal control measures, information system and supervise.Here're the four chapters in this essay:The first chapter is a summary of theories on risk management. First it introduces how these theories have been formed and developed. Then comes an analysis on the COSO "the Framework for an Enterprise-wide Risk Management ", which plays an...