China's Commercial Banks Operational Risk Control

Comparing with credit risk and market risk, newly started researches on operating risk are immature in both theory study and practical management. That is why this article takes the operating risk of commercial banks as its subject.Starting with the control of the operating risk of overseas commercial banks, this article elaborates several definitions on the operating risk and the operating risk is measured by quantity under New Basel agreement and tells about the classification and characteristics of the operating risk of those commercial banks. This article also introduces the controlling method of the operating risk of commercial banks under New Basel agreement and practical experience of British Financial Service Association and American commercial banks on controlling it. These all in some way inspire the control of the operating risk of commercial banks in China. The present conditions of the operating risk of commercial banks in China are drew forth, including mistaken recognitions and characteristics of the operating risk of commercial banks in our country, what sort of operating risk commercial banks in China confront as well. This essay in succession analyzes problems existed in the operating risk of commercial banks in our country and those contributing factors of these problems. These problems include: not enough cognition, defect in system, ineffective method of management, powerless monitor, and shortage of professional in the operating risk managing, uncreative measurement mode. Defect in system, ineffective method of management and powerless monitor are the most important ones among these problems. The last chapter is to emphasize the approaches of operating risk controlling in China: to build the framework of the control of the operating risk of commercial banks in our country at first, then to advance the measurement of the operating risk of commercial banks in our country by quantity, at last to consummate the controlling measurement of the operating risk of commercial banks in our country. During the perfection of the controlling method of the operating risk of commercial banks...