Study On Operational Risk In Commercial Bank

Recently, people are shocked that the operational risk of bank can bring so much loss to bank, by the event that, a dealer in SOCIETE GENERALE make the bank lose by 7.16 billion dollars due to his illegal investment to the financial derivative products. risk. Basel Commitee definitely defines the operational risk, market risk, credit risk as the three major risk which banks face, from that can we see the importance of operational risk in bank risk prevention. In our coutry, the loss brought by operational risk is amazing too, but the study of operational risk is so limited that it's of great significance to make research into operational risk now.This paper starts with the definition, the nature and the classfication of operational risk, comfirms the classfication of operational risk which is suitable for the commercial banks in our country by basing on the authoritative classfication and considering our basic national condition; then the paper analyzes the operational risk status which the commercial banks are facing, and the causes of the operational risk by the compilation of the data; the paper advances the method of measuring the operational risk of commercial bank in our country through introducing the measurements of international banking and analying the limitations of these measurements in our country. Because it's real difficult to collect the loss data and lack of the corresponding historical data, so this paper chose the macroscopic perspective, take the empirical analysis on Bank of China which is representative of state-owned commercial banks and Shanghai Pudong Development Bank which is representative of the joint-stock commercial banks by using basic indicators approach and income model approach, then we can calculate the requirement of capital in the two banks against the operational risk; We initially confirm that the income model approach has the advantage over the basic indictors approach through the empirical result , and we have proved that it's feasible to use the income medol approach to measure the operational risk of commercial banks in our country. Finally, the article advances the study conclusion of the operational commercial risk and proposes some suggestions about the measurement of operational risk in China.