On Operational Risk Management Of Chinese State-owned Commercial Banks Under The Framework Of New Basel Capital Accord

Basel II has formally adopted operational risk into the Risk Capital Measurement & Management Framework, which is of revolutionary significance in that it has put operational risk management level as a symbolic factor of commercial banks' core competitiveness. Due to poor data of capital resource and operational risk loss, we can not conduct exact management of operational risk according to Basel II, so as to increase the investment return and to enhance the competitiveness of domestic banks. With the tendency of financial globalization and deepening of open policy, it has become an urgent task for domestic banks to improve operational risk management. The advanced risk-management concept and methodology embedded in Basel II will play an important role in upgrading operational risk management level of domestic banks. This article, focusing on State-Owned Commercial Banks, has generally analyzed the status quo, current defects and main causes of their operational risk management. It has also tried to roughly measure and analyze operational risk capital requirement of commercial banks, so as to put forward some counter-suggestions to the operational risk management of domestic banks, complying with operational risk management framework of Basel II.