Study On International Trade Financing Of Commercial Bank Operational Risk Management

With the rapid development of China’s international trade, the international trade financing business of commercial banks has made considerable progress, has been gaining increasing consideration, and has been titled the top focused financing business. With the development of international trade financing business of commercial banks, their requirements of risk control and ability are growing. With the influence of traditional bank financing management concept, commercial banks tend to focus on the risk control of credit risk and market risk, but not operational risk of international trade financing. But, as international trade financing is being increasingly complex and professional, as well as Chinese Yuan is using across borders which are constantly expanded, and the innovation of financing also rich increasingly and rapidly, commercial banks are facing with intensive operational risks on international trade financing, let alone that trade financing usually has been targeted by criminals for its unique advantage especially under the tightened flowing situation at this moment, and that increasingly strict regulatory requirements issued by supervisory bureaus. Therefore, commercial banks are likely to suffer huge losses without effectively control of operational risks in international trade financing,.Based on commercial bank risk management theories of China and abroad, this article gives brief description of operation risk and international trade financing of commercial banks, with also simple analysis on credit risk, market risk and operation risk. This article stresses on the necessity of operation risk management in international trade financing by commercial banks along with its development, and focuses on the performance forms of operation risk in the international trade financing process aroused both from internal and external parts of commercial banks, and offers some helpful advices for the healthy development of the international trade finance business of commercial banks in China, on aspects range from risk culture, credit management mode, organizational structure, business process, personnel, to management technology and method, by listing the causes of operation risk and the problems of status quo.