A Study On Operational Risk Of Asset Securitization

Asset securitization is one of the most important finance innovation raised in the world since the 70's 20th century. It is symbol for carrying out asset securitization to pilot projects as the loan asset on the First Issue of Jianyuan and the First Issue of Kaiyuan have been securitizated in our country on November 2005. In this period of two years, pilot projects have been difficult developing. It is one of affect cause to operational risk besides market risk. In order to attach importance to operational risk and apperceive operational risk for every institution of asset securitization, or for supervise take cognizance of operational risk in the structure of asset securitization , on the basis of the operational risk management theory, this paper has carried out to identify risk, evaluate risk and control risk for asset securitization in China.First,how to identify operational risk,after comprehensively knowing the operational situations of securitization business operational risk of every business procedure mechanism in securitization has been analyzed systematically, adopting the operational risk classified standards divided by Basel Committee, the paper has carried out to identify risk points of the operation flow--- originator, special purpose vehicle, servicer, trustee and the organization else for it served., and selected 113 cases from the financial organization in china as to statistic studying on operational risk of assets securitization. Operational risk exists extensively in financial institutions, such as in banks, securities , insurance and securitization etc. The inside cheat, the course management and work state are the main operation risks securitization faces;the most frequent forms of operational risks are inside swindle, outside swindle and the form of inside colluding with outside to operate the risk; the senior leader in financial organizations is the main factor to cause risk loss taking place.Second, how to evaluate operational risk: The paper has carried out quantitative studies to operational risk of assets securitization by Capital Asset Pricing Model according as the First Issue of Jianyuan and the First Issue of Kaiyuanthe--- pilot projects of asset securitization in China, and has tested them through actual risk analysis. The results of the empirical research show that the CAPM model using income as independent variable may reflect operational risk value in some measure; from December of 2005 to April of 2007, the operation risk value produced by the pilot projects of assets securitization in our country is in a rational range; at present, the operational risk value of the First Issue of Kaiyuan is smaller than that of Jianyuan's.At last, the current situation and causation has been analyzed of the operational risk management in our financial organization in the paper, and suggested particular method to defend and control the operational risk of the asset securitization.