J Bank Online Banking Risk Management Analysis And Countermeasures

Continuing technological innovation and competition among existing banking organizations and new entrants have allowed for a much wider array of banking products and services to become accessible and delivered to retail and wholesale customers through an electronic distribution channel collectively referred to as e-banking. However, the rapid development of e-banking capabilities carries risks as well as benefits. As security is crucial for a bank, such risks must be recognized, addressed and managed by banking institutions in a prudent manner according to the fundamental characteristics and challenges of e-banking services.The risk management for e-banking has been discussed in this paper. This paper has chosen a state-owned bank in China and proposed this bank's risk management strategies and tactics to account for e-banking activities.Based on characteristics of the risks for e-banking, especially on the state-owned Chinese banks, the paper has identified two risk categories for e-banking, which are technical risk and business risk. According to the technical risk, banks should take appropriate measures on access control, data confidentiality and integrity, security audit, and dynamic security monitor. Risk control PDCA model and control policies and control program must be established to avoid the business risk.These controls and measures on the risk management will be helpful for the Chinese state-owned bank's development.