Internal Risk Management Of Agricultural Bank Case Study

During the Wall Street crisis causing from the secondary mortgage loan, so many financial tycoons bombed overnight, which aroused the international banking supervision authorities' paying more attention to the internal commercial banks risk management. As the only one that does not transform state-owned commercial bank into stock entity in our national four biggest banks, Agricultural Bank of China holds the higher bad assets level, severe cases come out frequently, which becomes the weakness in our national financial system. Strengthening the overall risk management in the internal bank, not only adapts the requirements from the supervision authorities' aspect, but also increases the core competence and further demands for transforming.Firstly, this article elaborates the backgrounds and meanings for selecting this internal risk management of agricultural bank case, and the viewpoints to the literature and research made by renowned scholars concerning about the internal commercial banks corporation risk management.Secondly, I list the following problems that existing in the agricultural bank's internal risk management-corporate juridical person administrates incomplete structure; corporate culture does not genuinely cultivate; internal risk management mechanism does not entirely established; job given does not according to the staffs' respective abilities; rules and regulations are lack of execution.Thirdly, I analysis the reasons why agricultural bank exists this issue, and meanwhile I put forward that the lagging of mechanism transforming is the fundamental causation to risk management. Operations get out of line seriously, and formulation culture effects does not taken, which are the essential causations. Internal controlling mechanism does not establish is the directly reason. Job given does not according to the staffs' respective abilities, which is the historical reason. Rules and regulations are lack of execution, which is the internal reason.Fourthly, according to the successful experience and new theories taken by global commercial banks' risk management, I investigate the commercial banks market; summarize the results; analysis the data, so as to bring out the suggestions for reinforcing the internal agricultural bank risk management.Constructing the modern financial corporations' regulations system is the toppriority of preventing from the financial crisis. Educating the appropriation formulation culture to the staffs, intensifying the sense of legal consciousness and risk management.Establishing the risk management mechanism is the key to less the financial crisis influence.Constructing the internal management system is the basis for avoiding the financial risk.Raising the computer and internet safeguard protection is the crucial method in modern technology.Strengthening the execution is the guarantee for the risk management.At last, this article combines the successful experience and advanced theories from the international commercial banks risk management, summarizes and analyses the agricultural bank risk management work, the main purpose is to find the new efficient way to solve the risk problem, in order to provide the theoretical supporting to the overall internal agricultural bank risk management.