Research On Operation Risk In China Commercial Bank

Operation risk is one of the most archaic risks. Although operation risk is not the new issue, Operation risk has gradually become an important theme, With the opening and globalization of finance and economy, complexity in bank business and the application of information technology. Many banks in China and abroad came bankruptcy or got a big loss because of operation risk.Generally, the risks commercial bank faced with include market risk, credit risk and operation risk. Among these risks, commercial bank usually pays attention to the market risk and credit risk. While, the operation risk is often ignored. Commercial bank began to attach importance to operation risk when the "New Basel Capital Accord" was published on June 26th, 2004, which brings operation risk into a managerial framework. The framework requires the least capital that is enough. Meanwhile, the accord puts forward a new claim of measurement and management of international bank operation risk.In China, the number of operation risks is on the increase and according to China's entering WTO agreement, China's bank industry must be opened this year. The issue whether we can deal with the operation risk is not only related with the subsistence and development of China's banking industry, but also with the safety of China's economy and finance. As a result, how to deal with the operation risk becomes an urgent task.The paper sets forth the questions by six chapters correspondingly.The fist chapter is the introduction of this paper.The second chapter is mainly focused on the definition, sort, character and measurement of the operation risk.The third chapter is mainly about the research and analysis of the status quo of the operation risk in China's banking industry. In this chapter, the fact that there's misunderstanding and limitation of operation risk and operation risk management in China has been indicated.The fourth chapter is focused on the research on the reason to China's operation risk. At first, the root of the operation risk is analyzed. Then, the...