Study Of The Banks Operational Risk Management On The Internal Control

Risk management is always regarded as an important task by commercial banks. The scientific and effective risk management can not only make sure banks run persistently, but also reduce fund cost of banks to withstand the loss of risk. Presently, there are mainly three kinds of risk faced by commercial banks: credit risk, market risk and operational risk. However, commercial banks pay much more attention to credit risk and market risk than operational risk, which is becoming more and more serious in recent years. Recently, loss events caused by operational risk surged, which make people realized the importance of operational risk management in risk management. Operational risk is another important risk after market risk and credit risk. In the new basle capital accord published in June 2004 basle committee brought operational risk into the risk management framework and enhanced the demand of its management.The thesis reviews the research results of the operational risk in commercial banks home and abroad, then, studies the basic theories of the internal control of the operational risk and seeks for the relationship between the operational risk and internal control by studying all the aspects of the operational risk, such as definition, clarification, management practices, etc, reaching the result that internal control is the fundamental management method of the operational risk, which settled the research foundation of the thesis. Secondly, research on the operational risk of our commercial banks, getting the result that the operational risk of our commercial banks mainly lies in the inefficient and incomplete internal control system, then, through the analysis of the internal control practices of the operational risk in our commercial banks, the thesis conclude the practicing effect and find the problems and limitations. Thirdly, focusing on the problems, earning from the successful experiences of foreign banks, the thesis establishes the internal control system of the operational risk of our commercial banks, formed a realistic, practical, complete, and integrated framework.