Research On The Operational Risk Of Commercial Bank In China Based Basel Capital Accord

Modern commercial bank, as the most important part of the financial institutions and the subject of financial system, faces a variety of risks during its business development. It can be said that risks are accompanied with the bank's activities. Risk management is the subject can not be avoided by commercial bank forever, and whether a commercial bank is successful depends on risk management's well or not. In recent years, with the gradual progress and implementation of "New Basel Capital Accord," commercial banks in China have been expanding their own operations, deepening the level of information, also pushing new technologies and new products, and the pressure from operational risk they face is greater and greater. Therefore, it is practically guiding significant to the commercial banks'sound development in China that how to conduct a full and systematic study to the status of operational risk faced by commercial banks in China, so that to prevent effectively commercial banks in China from facing operational risk.The operational risk of commercial banks is the important risk faced in their daily business processes, and has received the special attention from the international banking. Basel Committee has passed the "New Basel Capital Accord" on the problem of commercial banks'regulation. The study center of this paper is that how to manage the operational risk of commercial banks in China based on the "New Basel Capital Accord". First of all, starting from analyzing the definition, classification and characteristics of operational risk, as well as the progress included in banking supervision, the author has summed up on the theoretical definition to the operational risk of commercial banks by the "New Basel Capital Accord". Secondly, based on the analysis of commercial banks'organizational structure and management framework two aspects, it has summed up the best practices of large international banks in the operational risk management. And combined with the example of JPMorgan Chase in New York, it has analyzed operational risk management frameworks of large international banks advanced, and compared with the status of operational risk management of commercial banks in China, has summed up its best practices in operational risk management. Then combined with the actual situation of commercial banks' development in China again, it has analyzed performances and causes of the commercial banks'operational risk. Finally, combined with the author's work practice in the Bank of China branch in Heilongjiang Province, and countered with the current situation of the commercial banks'operational risk management in China, it has proposed some countermeasures and suggestions to strengthen the operational risk management of commercial banks in China.