Research On Enterprise-wide Risk Management System Of Our State-owned Commercial Banks

Under the development of financial globalization and financial innovation, thecompetition our State-owned Commercial Bank faced is intense increasingly and the riskcomplicated gradually. Risk management is one of the modern commercial bankingmanagement’s core parts, and it plays a decisive role in our State-owned Commercial Banks’ management.Nowadays, our State-owned Commercial Banks’ risk management system is notperfect. It pays more attention to credit risk, but neglects marketing risk and operationalrisk. The current Risk Management System is hard to control the all kinds risk ourState-owned Commercial Bank faced. The Multinational commercial banks have adoptedthe Enterprise-wide Risk Management System for many years, and have their owncharacteristics. Recently, along with the economic globalization and the reform of Chinesefinancial system, the diversification trend of our State-owned Commercial Bank isdeveloping, and the request for Enterprise-wide Risk Management System is very urgent.This article firstly summarizes the definition and category of risk based on somerelative theories. Clarifies the International advanced risk management scheme and therelevant requirement of Basel Capital Accord after making clear the evolution of RiskManagement Theory. Then, separately summarize Citibank and HSBC bank’sEnterprise-wide risk management system and analyze their strengths. It paves the way forthe countermeasure of our State-owned Commercial Banks’ Enterprise-wide riskmanagement below. Finally, elaborates the current risk management system of ourState-owned Commercial Banks. According to the require of Basel Capital Accord and thesuccess experience of Multinational commercial banks, we should establish ourState-owned Commercial Banks’ Enterprise-wide Risk Management System, which issurely the core part of this article.