Features And Control Measures Of The Operational Risk In Domestic Commercial Banks

The current financial organizations have to face 3 major types of risks: credit risk , market risk and operational risk. Now domestic commercial banks haven't pay enough attention on operational risk management. But a lot of startling charge sheets have ap- peared because of operational risk and the banks have suffered serious losses.Basing on the New Basel Capital Accord, this paper analyses the major forms of operational risk in domestic commercial banks. Operational risk is curvilinear distrib- uted and unmeasurable. It has conflict with the operational goals but correlative with credit risk and market risk. So it becomes necessary but difficulty to prevent and con- trol operational risk.And then, starting from the essence of bank, this paper has analysed the major rea- sons of the commercial bank operational risk in our country, such as invalid control sy- stem, moral problems and un-sound social legal system, low management level, un-so- und management system and losing talent resource etc. And according to the reasons that operational risk produces , this paper has suggestions to control the risk. Firstly strong administeration and effective supervision are undoubtedly necessary. However it's the basic means that the domestic commercial banks have to reinforce internal con- trol. How can he domestic commercial banks reinforce internal control? The paper suggests some approaches: quantifying of risk, routinization of control means, approp- riate separating duties controled by each other. As well as internal control measures should"blend"into the operating processes. This paper also appeals all the banks to share the risk resources and to establishment the long effective anti-risk system. At the same time the author hopes the domestic commercial banks to improve the Level of the talent resource.