Study On The Operational Risk Management Of Our Country's Commercial Bank Under The New Basel Capital Accord

With the growing development of financial derivatives, the risks faced by financialinstitutions have become increasingly prominent, in recent years, the frequent occurrence ofmajor financial has brought huge losses to domestic and foreign banks. The outbreak of 2008global financial crisis and the collapse of Lehman Brothers bank sounded the alarm to thebanking industry. The international monitoring organizations which are representative by theBasel Committee on Banking Supervision have concerned about the operational riskmanagement in financial institutions very much. In June 2004, the Basel Committee onBanking Supervision formally introduced the ; in September2006, the Chairman of China Banking Regulatory Commission Liu said that China's majorcommercial banks will implement the new agreement in 2010. At present, the internationalbanking industry have made some achievements in this area, a number of international activebanks and operational risks banks have established operational risk management framework.Though the Chinese commercial banks have recognized the importance of operational riskmanagement, and have taken a number of measures for the prevention and management, thereis still a considerable gap compared to the foreign commercial banks.This paper aims to take the new Basel Capital Accord as a theoretical basis, theadvanced operational risk management experience in international banks as practicalguidance, through referring to a large number of documents as well as related news storiesrelated to China's commercial banks to collect data to analyze the status of China'scommercial banks ,which include the changes of national policy and characteristics ofoperational risk events and the reasons for the ()our operational risk management. Thenthrough learning from Deutsche Bank, America Bank and Commercial Bank of DongyingCity, put up with proposed measures to improve operational risk management, focusing onthe internal control of specific measures, aiming to minimize the incidents of China's commercial banking operations risk.