A Study On Operational Risk Control And Management Of Chinese Commercial Banks

The banking industry is a high-risk profession, the guard, management and meltdown of the risk is the eternal subject of the banking industry development. Risk management ability is the core competitive ability of commercial banks.As one of the important tasks for discussion in the field of modern commercial bank risk management, operational risk management is very crucial for commercial bank's safety. Globally, commercial banks have suffered from horrific events that occurred frequently because of operational risk, the operational risk increasingly catches the attention of the academic circles and banking circles. Some internationally active banks and banks with significant operational risk exposure have established the frame of operational risk management, and they are expected to hold capital to protect against loss from it. In contrast, although Chinese commercial banks already realized that the operational risk is more important and its significant hazardous nature, compared with the overseas commercial banks, they still had a certain distance, like the data lacks, the management frame is imperfect, the strength of supervising is not enough, the information disclosed question, these problems need to make the improvement. The paper intends to discuss how to control and manage the operational risk using the foreign advanced experiences for reference as well as taking China commercial bank's condition into account.Firstly, the paper gives a summary of the study background, including the studying status, the studying tendency, and illuminates the study means, the arrangement of structure, as well as the innovations. Secondly, the paper gives an attention to the operational risk management theory. It's mainly focused on the definition, sort, character and cause of formation. Thirdly, the paper gives an introduction of the advanced means to control and manage operational risk in foreign commercial banks. Fourthly, the paper analyzes the status of operational risk management in Chinese commercial banks. The fact that there's misunderstanding of operational risk and limitation of operational risk management in Chinese commercial banks has been indicated. Lastly, takes the regard human resources management, the consummation internal control system, as well as strengthens the exterior supervision as the guiding principle, the paper proposed the countermeasures and the suggestions to operation risk control and management.