Study On Operational Risk Management And Measurement Model Of China Commercial Banks

Behind the credit risk, the operational risk has become the second largest risk in many international banks. The new Basel Accord made an important amendments, which made the operational risk into the calculation of risk capital and the regulatory framework. For China's banking industry, improving operational risk management, especially the deep study of the measurement methods, is the development trends of integration into the international banking sectors.Based on the actual situation of China's banking industry, a systematic study has been made in this paper on the operational risk management and various measurement models, including management procedures, management frameworks, organizational system construction, prevention and control measures and incentive mechanisms. The strategies and suggestions has been proposed to strengthen risk management of China commercial banks. An operational risk measurement study has been taken by the three incremental measurement models: basic indicators, standardized method and senior measurement, which were proposed by the Basel Committee. Also, the operational risk measurement model was given, which was more suitable for China's financial environment .The innovation point of the paper is the combination of the operational risk measurement theories and empirical studies to break through the limitations of existing studies, which will make the operational risk management and measurement more operational.