Study On The Operational Risk Management Of Commercial Banks In China

Commercial bank is facing many complicated risks in process of managing, which including:market risks, credit risks and operational risks, these are the three main risks of commercial banks. During the risk management in recent years, operational risk and its management became one of the hot topics of international banking sector. Yet banking sector has unclear understanding on optional risk and its management, having no specific definition, the boundary with credit risk, market risk is unclear, while the historical data is comparatively blur, and the model is complex; without a unified management system, function of risk management separated in different management department, compliance management, internal audit and operational risk management has no clear boundary; and the studies on operational risk management still stay at theoretical level, lacking of practical experience. China Merchants Bank, as a excellent domestic joint-stock commercial bank, attaches great importance to operational risk management, has done a lot of research work in system, management process, organizational structure, risk identification, risk evaluation, risk measurement, gathered some beneficial experience.Of course, because of historical and environmental restrictions, just as other domestic commercial bank, operational risk management level of China Merchants Bank especially in the basic units, is comparatively low, cannot meet with requirement of " The New Basel Capital Accord", as well as the strategic request of China commercial bank in the aspect of operational risk management. Therefore, according to Basle Committee on Banking Supervision's requirement in operational risk management, profoundly understanding theoretical framework of commercial bank operational risk management; positively consult to the operational risk management model and experience of domestic and oversea advanced banks, deep analysis the problems existed in China Merchants Bank basic units. Have a good operational risk management in basic units is of importance. This article begin with definition amony operational risk management and internal management, compliance managemen, anaylyzed the essence of operational risk and its management. Based on the proposition that "system superior to technical", this article focused on anaylsis and study in theoretical framework of operational risk management system and pracitcal management system model of several international advanced banks. On that basis, made some proposal on the construction of China Merchants Bank operational risk management system in basic units.