Risk Management Innovation Research Of Foreign Exchang Business In Chinese City Commercial Banks

The foreign exchange business of city commercial banks in our country is developingrapidly in the new century, whereas foreign exchange business risk is increasing rapidlyaccordingly, and the pressure of risk management they are facing is increasing day by day.At present, the consciousness of risk is not good in general, the system of risk managementhas not been well organized, specially the foreign exchange risk management foundation isfragile, in city commercial banks of our country. It is mainly risk management capabilitymatches that lie in the competition of foreign exchange business among commercial banksin the future.Therefore,it is urgent to promote risk management innovation of foreignexchange business in city commercial banks, and enhance their own risk managementcapability.This article makes a comprehensive, systematic and in-depth research on the foreignexchange business risk management innovation of city commercial banks in our country,by means of comparative analysis, case analysis and qualitative analysis,etc., thus finallyputs forward some practical and usable for reference ways and measures, based upontaking examples from international advanced risk management ideas and practices.This article is divided into5parts. The first part is introduction. The second part is thelogical starting point of the whole article, defining the concepts of foreign exchangebusiness, foreign exchange business risk, foreign exchange business risk management andforeign exchange business risk management innovation, and furthermore generallysumarizing theories and bases of foreign exchange business risk management and itsinnovation. The third part emphasizes on summing up the main problems which lie in riskmanagement of foreign exchange business, based upon elaborating the foreign exchangebusiness risk management developmental reality, and thus further analyses the necessityand urgency of foreign exchange business risk management innovation of city commercialbanks in our country. The fourth part obtains some beneficial inspirations by investigatingthe practices of foreign exchange business risk management in commercial banks homeand abroad. The fifth part designs innovational ways, makes up rules, structures frame andputs forward a series of operational advices for foreign exchange business riskmanagement innovation of city commercial banks in our country.