Research On Operational Risk Management Of Commercial Banks In China

As we all know, the banks in the course of business will always face a variety of risks, especially in the financial industry, business and the increasing complexity of today’s business environment. In order to be able to bank a healthy and sustainable development continues, effective risk management tools are essential. For now, the risk of the banking sector on the need to face probably fall into three categories: credit risk, market risk and operational risk. Over the years, research on the bank’s risk management has never stopped, but the object of most research is credit risk and market risk, have developed a relatively sound risk management practices and systems, and for the same as the operation of one of the three major risk but few studies of risk involved. For operational risk do not pay attention eventually led to the banking system in the late twentieth century worldwide have suffered many major cases caused by operational risk. The case was finally put banking institutions,authorities and scholars attracted attention to operational risk unknown up. They began to realize operational risk will result in huge losses of the banking sector.Although in recent years, the study of operational risk began to increase, but the main research directions Overall, academia and banking or credit risk and market risk based.Lack of specialized research on the characteristics of operational risk, as linking research to operational risk management and internal control banks extremely rare.The author of the COSO management system, Basel and read the writings of other scholars in the industry from different aspects of operational risk their elaborate theoretical system of basic theory and highlights the link operational risk management and internal control, come to a sound internal control system is the most effective means of operational risk management, and as a theoretical basis for this article. Then,a commercial bank X of banks, for example, for the specific case in operational risk management, and to investigate the failure of internal control to enhance their theoretical persuasive.Bank X is one of the many joint-stock commercial banks, outlets throughout the country, the number of employees up to fifteen thousand people, as of the end of 2014,the total assets of up to 156 million. X bank’s risk management system in China’s commercial banks are quite representative. This article first describes risk management in the bank’s operations X, and then X Bank in the specific case of operational risk management, internal control perspective-based bank analysisindicates the presence of X in operational risk management issues, combining theory and practice confirms the theory of this article that "a sound internal control system is the most effective means of bank operational risk management." and the strengthening of internal control in terms of X bank operational risk management system recommendations for improvement, which extended to the whole of the commercial banking industry, in the hope that China’s commercial banks operational risk management have some suggestive.