Research On Flexible Management With Bank's Operational Risk

Bank's operational risk is associated with banking operation. In the recent years, cases of operational risk are increasing and causing serious losses. As a result, the international banking community is attaching great attention to it. The existing means of controlling operational risk is constant improvements on the processes and regulations, which is leading to complex procedures and repeating systems. Staff becomes the vassal to them. Further, they become insipid and gingerly to their works. However, serious cases are still rising. In this paper, the author held that stuff was the most crucial factor in controlling operational risk. By improving the processes and regulations with introducing flexible management, their initiative and consciousness can be aroused, thus the barrier to prevent risks can be built up by their responsibilities. It also analyzed the features and causes of operational risk, indicated the controlling model of "three-dimensional restrictions" (Encl. physical restrictions, institutional restrictions and psychological restrictions). Based on the aspects of organizational structure, allocation of responsibilities, position planning, enterprise culture, communication mechanism and incentive mechanism, it designed the flexible management system for controlling bank's risk and brought forward the relevant recommendations on the implementation of controlling programs.