Commercial Bank Operational Risk Management

Operational risk is a kind of risk inherent of commercial banks,which is old and fresh.Since the90s,numerous of serious operational events have happened in banking industry home and abroad,brought great fund lost to the commercial banks and produced negative effect in the society, so that the operational risk got broad attention and attach great importance in banking industry supervision institutions and academic circle.Scientific managements and preventions toward operational risk have direct effect on the development of banking.To Chinese banks,because of the later recognition toward the operational risk,we are lack of experience of the operational risk.The resent researches on the operational risk mostly focus on the quantification models;rarely learn the relationship between the operational risk and internal control etc,such basic theories.This paper propose the basic ideas and corresponding countermeasures to promote and improve the internal control on operational risk by focusing on the theme of the management of operational risk of commercial banks based on internal control,from both theoretical and practical.The thesis reviews the research results of the operational risk and internal control in commercial banks home and abroad,and then describe the definition,classification characteristics of operational risk.On that basis,the author seeks for the relationship between the operational risk and internal control,reaching the result that internal control has effectiveness and limitations on the management of operational risk,and redefines operational risk under the perspective of internal control,to lay a solid theoretical foundation for later discussion.Next,analysis the major foreign and domestic operational risk cases at this stage,analyze the characteristics of operational risk of domestic and foreign banks and the causes of these cases occurred from the point of view of internal control.Finally, the paper propose a number of recommendations and related support measures from the perspective of internal control in order to achieve good results in the prevention of operational risk.