Study On Operational Risk Management In Credit Business Of Rural Credit Cooperatives In China

Operational risk is something wholly new and draws little attention in rural credit cooperatives in China.Therefore,it has practical imprications to study the operational risk management in rural credit cooperatives by taking the credit business for instance,the core business of rural credit cooperatives.On the basis of (A Revised Framework June 2004),the thesis analyzes the origins of operational risks referring to the principles of institutional economics and administration pschology.Then the major operational risks during credit business in rural credit cooperatives are cited in operation sequences,which are categorized into four kinds:fraudulence,dereliction of duty,mistaken behaviors and external defects.With the analysis of micro-management,causes and the general situation,there is some problems in the management of credit operational risks in rural credit cooperatives such as "defaulted" phenomenon of culture management,insider control,the backwardness in management means and so on.Also the example of the rural credit cooperative union of Shunde is discussed to emphasize the above issues.At the last part of the thesis,some advices are forwarded to improve the management of credit operational risks in rural credit cooperatives:constructing environment guided by external supervision and risk culture,strengthening the internal control system in the aspects of organization structure,institutions and process and perfecting the credit support system including talent training,incentive and constraint mechanism and the credit electronization.