A Study On Operational Risk Management Of China Commercial Banks

This paper is focus on the research of the operational risk in bank.The business of bankers is to manage the risk in the banks,which is defined as banking in fact.Therefore,the ageless theme of banking development is how to enhance the ability to control the risks and guard against the risks.Moreover,the core competitiveness of the banks concentrates on the risks government.The operational risk is extremely old,accompanied with the bank since its birth,and it is crucial of all kinds of risks nowadays.However,the commercial banks of our country are not familiar with this kind of risk,whether in theory or practice.In our commercial banks,there are weak consciousness on operational risks,poor framework of risks control,single method to manage the risks,little information disclosed,imperfect internal control mechanism and defective environment outside for a long time.To sum up,we could get a conclusion that the supervision of controlling and preventing the operational risks stays in an early stage,which is the root to cause accidents occurred thich and fast in our commercial banks,so as to bring great economic loss and prestige loss.In this situation,we must attach importance to operational risk and improve our ability to control and guard against the operational risk.The research of this paper involves both prescriptive study and empirical study,embracing both qualitative and quantitative analysis.The sum total of the study on this subject is as follows.To begin with,describe the definition of operational risk,categorization and the characteristic,and then analysis the causes of operational risk form the internal control etc.Secondly,do research on the frame and strategy of operational-risk management in commercial banks and framework and practice of operational-risk management in international active banks.Finally,we fall back to the operational risk in our home bank.On the foundation of the research on international operationanl risk above,we step to summarize the present situation of operational risk supervision,characteristic and cause.Besides,we exert ourselves to give a profound compare and analysis of the feature of operational risk at home and abroad.This paper give a good means to govern operational risk in our commercial banks,namely how to construct system of quantitative management,involved experience of operational risk supervision at home and abroad.In addition,another great accomplishment of this paper is to instruct how to prevent form the financial crime,which is caused by the greatest operational risk,based on the internal control.These objectives above are the major thrust of this paper.