On The Operational Risk Management System Of Commercial Banks

Internal control and operational risk management are the core of the management framework of modern enterprises, and the system to ensure sustainable development of enterprises. So, what kind of risk is operational risk? What is its relationship between internal control? What is the significance of strengthening the operational risk management? They are the first three questions to be answered when we study the operational risk management. In addition, with the continuous expansion of bank size, how to effectively manage the operational risk and reduce the losses are increasingly becoming the focus of financial circle. Basel Supervision Committee brought operational risk into management framework of the "New Capital Accord" which had officially been issued in 2004. This brought forward new requirements for the measurement and management of operational risk of international banking. Viewing from our country, major cases caused by operational risk occurred frequently, all of them brought about mass economic losses, damaged the image of banks and disturbed the normal social order. Under this background, it is more significant to study the content operational risk management in the operation of commercial banks.From the general to the specific and from the objective to the abstract, this paper studied how to establish the perfect basic theory for the evaluation of banks’ internal control. Therefore, this paper discussed the content in 7 chapters. The logical constructions are as follows:The first chapter summarized the theory of risk management and internal control. Firstly the author defined the relevant concept such as risk, operational risk, risk management, overall risk management and internal control. Secondly, after finding the various causes of operational risk of the domestic commercial bank, the author studied the characteristics that a rigorous and effective internal control process should have.The second chapter is about the current situation of operational risk management of commercial banks. On the basis of the supervision needs required in "Basel New Capital Accord", the author analyzed the current operational risk management situation of several international and domestic commercial banks and concluded five references for our banks.The author talked about the construction of domestic operational risk management system from the third to the seventh chapter. This part took the experience of operational risk management of Si Chuan ZG bank as an example, based on the model of value chain, the author analyzed and discussed three aspects:operational risk management process designation, operational risk system construction, operational risk environment construction. In the mean time, the author provided some suggestion for the availability of domestic commercial banks’operational risk management.