Empirical Research About The Risk Of Fraud In Chinese Commercial Banks

The financial crisis which began in 2008 made commercial banks more serious about risk management than ever. Our studies on operational risk cases happened in Chinese commercial banks showed that internal and external fraud became the most important causes of operational risk, which differed from international active or advanced banks. Therefore the research on prevent and control the risk of fraud in Chinese commercial banks has more signality than before.This paper built a case base based on 171 fraud cases happened in Chinese commercial banks, detailed in many aspects such as time span and frauds'position of fraud cases, business line and area distribution where fraud cases continually occurred. This paper pointed out commercial banks should be care with the "low frequency high impact" cases because they caused very huge losses. And by using correlation analysis and regression analysis, this paper found commercial bank branch area, business line, frauds'position in commercial banks of internal fraud case and the ownership of commercial banks are influencing factors of the losses of fraud case.This paper gave its suggestion on Chinese commercial banks improve their ownership structure and internal control system; broaden business scope and build a perfect risk management system to control the risk of fraud.