Cause Analysis And Countermeasures For China's Banking Operational Risk

Operational Risk, which is defined by the Basel Committee in the way of the loss caused by the imperfect control, system factor, or the exterior event. Operational Risk, Credit Risk and Market Risk are the major Risks that the Financial Institutions should face. Comparing with the Credit Risk and Market Risk which have relatively mature quantitative technology, the study on Operational Risk in only in recent years, and stays in fast-developing stage.Based on many researches in various fields associated with Operational Risk, most theorists believe qualitative researches are more adaptable than quantitative ones in present China where the study on Operational Risk is only in starting-point stage; therefore, the study on modern managerial. model associated with Operational Risk is fairly necessary. In this paper, firstly we analyze the concept of Operational Risk; expound its harm and characteristics. Then, we discuss the Manage Model of Operational Risk.ChapterⅠ,Introduction of the background, significance and what's going on in the study of Operational Risk, meanwhile refer to the major content, methodologies and technical ways in my paper.ChapterⅡ, Study the volatility of banking industry in our country caused by Operational Risk.ChapterⅢ, Comparison and analysis on different management models.ChapterⅣ, Empirical study on modern management model of Operational Risk in the credit loan for decoration business in some commercial bank.ChapterⅤ,Seven challenges face the banking industry, conclusion of this paper and outlook of future study.Take the commercial of Bank for instance, we adopt the way of the date and analysis, statistics a lot of instances, assay the Operational Risk in the Manage Model of Operational Risk. We found that, the mass of Operational Risk is caused by deficient system and management. So, to reinforce the management of the business is so important to avoid the Operational Risk.Finally, compare the mortgage of personal house and car, base on the Manage Model of Operational Risk, expound a new Flow of operation of Fitment budget plan. We can see, that the Operational Risk is less on the new flow. We can see through conclusion, that it is very necessary to bring down Operational Risk by the way of the Manage Model of Operational Risk.