Commercial Bank Operational Risk Management Model, Difficulties And Solutions

Innated with banking industry, operational risk and its management exists objectively, but it's in recent years to study into it systematically, strengthen the operational risk management and bring into line with the commercial bank risk management practice .In June, 2004, Basel Committee of Banking Supervision released International Convergence of Capital Measurement and Capital Standards: a Revised Framework, which put the operational risk into banking industry supervising and managing framework. In 2005, China Banking Regulatory Commission released The Notice to Reinfource the Operational Risk Work,which had officially opened the prologue to strengthen commercial banks operational risk supervising and controlling .To search the current difficulty and question of commercial banks in operational risk managing and system constructing , study the method and measure to improve and reinforce the operational risk management and enhance management level,based on International Convergence of Capital Measurement and Capital Standards : a Revised Framework ,after the author briefly introduces the definition, classification, nature and the controling characteristic of the operational risk as well as the modern operational risk management tendency about the commercial bank, from the main management flow , organic structure and the risk recognition, appraisal, control, supervision, measurement, analysis and report, the author explains the operational risk management model operated by the overseas commercial banks in detail.In this foundation,using the example of one large-scale commercial bank , the author briefly introduces the object, the basic principle and the organization paradigm of the risk management ,with the angle of principle, flow,content, method, tool and so on ,and the author analyzes the operational risk management specific practise including the risk recognition, self-appraisal and independent appraisal, control and slows release, surveillance and measurement, analysis and report ,etc.Finally, based on personnel , executive and technical risk managemnet, and connected with status quo of home commercial banks operation and management ,the author presents the shortcomings and difficulties of the operational risk management of commercial bank. Based the overseas commercial bank's experience, the author proposes that efforts should be made to improve and consummate the operational risk management system, and raise the operational risk management level from the five aspects: operational risk management culture, management system, management method,, control system and responsibility mechanism .The view and suggestion in this article have obtained the recongnition of the operational risk management department of the branch where the author serves ,part of which has been reported to the general headquarters and will be considered when the operational risk management system of the bank is revised .