Research On Risk Management Of Financial Innovation In City Commercial Banks

As the business of city commercial banks more complex and diversified, and cross-cutting between its businesses, its risk is not just a single aspect of the risk, but into the overall risk management with a set of credit, market, operational and other risk dimensions.In accordance with the theory of risk management, this paper research on the risk identification, analysis and measurement of financial innovation about city commercial banks, this mainly study three dimensions of the overall risk management about credit risk, market risk and operational risk in the process of financial innovation in city commercial banks, research the overall risk with different types, different business and different dimensions. In this paper, firstly introduce a variety of single risk factor identification, then use the Value at Risk, stress testing and game model of risks to analysis each single dimension of risk, and propose the overall risk measurement model of financial innovation based on Copula function about the city commercial banks, Separate study the marginal distribution of random variables and their correlation structure between them, to better explain the relationship of asymmetric, nonlinear and tail correlation between variables, finally introduce the empirical analysis of a commercial bank's overall risk relevance.This study on the Construction of overall risk management system of financial innovation about China's city commercial banks, and explore the financial innovation model in line with China's financial market environment, and promote the vigorous development of China's financial markets, with long-term strategic significance.