The Research On Operational Risk Management Of Agricultural Cooperative Bank Of Changsha Yuelu Branch

The Rural Cooperative Bank(or Rural Credit Cooperative Organization; RuralBusiness Bank) are popular financial institutions throughout our county and city,which is high liability as the banking sector, and higher risk than other banks, owingto historical reasons and its system. So the Rural Cooperative Banks have higherincidence of various financial cases than other financial institutions. In recent years,The Rural Cooperative Bank gained continuing development in rural credit holdingdominant position, and its assets scale is listed the second place less than ChinaIndustrial and Commercial Bank. Therefore, the central committee and the statecouncil have been getting a high degree of concern. The Basle concordat thecommittee formally promulgated the new capital protocol. And the China BankingRegulatory Commission introduced a series of operation of risk management andoperation risks provisions clear in our banking risk management system including therural credit risk management. So more effectively methods to prevent risks are majorissues for the rural credit cooperatives for achieving stable, sustainable development.This paper focuses on the operational risk management in Changsha YueluBranch of Rural Cooperative Bank, using theory with practice, and operational riskmanagement theory and method of operation. Firstly, this research introduces the riskof the relevant concepts, definitions and classifications and management principle,measuring, management processes. Secondly, the operational risk situation ofChangsha Yuelu Branch of Rural Cooperative Bank has been discussed and evaluatedin the paper with the risk analysis and application the basic law of the Baselcommittee about indicators and standards. Then, the paper analyzes the problems ofthis bank. Lastly, the research gives the risk management policy and implementingsecurity measures to the risk management problems in operation.The aim of this paper is to analyze importance to rural areas of operational riskmanagement by the practice of Changsha Yuelu Branch of Rural Cooperative Bank.Some advices about how to manage the operational risk will be given in the paper,which will achieve sustainable development of healthy and steady.