Research On The Manegement Of Operation Risk For China's Commercial Banks

With commercial bank carrying out its transactions, operation risk is discovered in commercial banks. Then, operation risk, market risk and credit risk become three risks commercial bank must be confronted with. However, operation risk doesn't receive enough attention as early as market risk and credit risk, for operation risk, together with market risk and credit risk, was proposed to be managed after New Basel Capital Accord was published.In our country, Concerning the harmfulness of operation risks in business banka,Since the 1990s, many cases caused by operational risk have happened in business banks. These cases brought great loss to the business banks and threaten the country's stabilization of finance and the development of the business, especially the case of QILU bank happened recently which aroused the attention of anyone concerned. In the situation that the environment of international economics and finance changing fast and the instruments are innovated constantly,cases coursed by operational risk happen more frequently. Its harmfulness spreads continuously. The banks must attach importance to operational risk and recognize the importance of operational risk management, and explore available method to solve the adverse effect from operational risk.In our country, it is late to start to research operational risk. It is recent years that the operational risk management is attached importance to. So there is no common agreement on operational risk about its conception, measuring technology and method. There are still no public database and mature management technology and system about operational risk.The paper attempts to put forward some targeted and useful programs to control operation risk on the basis of analysis of the present situation and problems of China's operation risk management. The paper is divided into five parts as follows:The first chapter is the preface, which introduces the research background and significance of operation risk management of our country's commercial banks, the comprehensive presentation of related research present situation both in and abroad, research route and research methods. The second chapter, which presents the definition, classification, characteristics and measuring methods of operation risk, basic principles, the frame and tactics of operation risk management, is the overview of commercial bank's operation risk management, and the introduction of operation risk management experience of west commercial banks.The third chapter is mainly about the present situation and problems of operation risk management of our commercial banks. In this chapter, it recommends the characteristics and causes of our commercial banks' operation risk, the current situation and main problems existing in operation risk management of our country's commercial banks.The fourth chapter tries to give the measures to improve the management of operational risk in business banks in our country, and the chapter gives sixt measures which from six different angles to manage the operational risks in business banks.The last chapter is the conclusions of the whole paper.