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The Research On Operational Risk Of XX Bank Henan Branch

Posted on:2014-02-13Degree:MasterType:Thesis
Country:ChinaCandidate:J WangFull Text:PDF
GTID:2249330398478268Subject:Financial
Abstract/Summary:PDF Full Text Request
With the occurrence and exacerbation of the financial turmoil in the West in2008, people strengthen the emphasis on financial risks, pay attention to risk management as important as income in order to achieve the maximum reduction of financial risks. Losses caused by operational risk have been significantly greater than the market risk and credit risk in many huge events of commercial banks from a global perspective. The attention of the operational risk of commercial banks in China began with the understanding of the continuous operational risk events outbreak of foreign commercial banks in the late1990s. Although China and Western developed countries start at the same time, the effect of operational risk management is not ideal, theory and practice activities are disconnected seriously, the scale and degree of operational risk loss are high. The banks need strengthen the management to reduce the operational risk events of commercial banks effectively.Four state-owned banks is a high incidence of operational risk for the system. XX Bank is one of China’s four major state-owned banks. It implements a branch-based management system. Because it is representative, the study selected it to analysis operational risk. Henan Branch is a branch of the XX Bank, it has a certain influence for the feature of the more number of employees and institutional levels. The study on operational risk analyzed the existing problems and studied the countermeasure by questionnaire and typical cases from a practical point of departure to have certain significances to Henan Branch of XX Bank. The operational risk status quo of XX Bank Henan Branch is analyzed from the point of view of both macro and micro. From a macroscopic speaking, revenue model is used to analysis XX Bank Henan Branch and N Bank Henan Branch. There is still room for improvement of the level of operational risk management in the bank. From a micro perspective, the study on operational risk collected the operational risk loss events by interview and investigation, analyzed and classified the operational risk cases for operational risk loss event distribution, indicated the main reason for its operational risk are three factors. They are the staff, external events and processes.The study on operational risk selected cases of XX bank Henan branch to carry out deep analysis from representative personnel, external events and process. The conclusion shows that the main problems of operation risk management in this branch exist in the loss of morality, the lack of employee skills, the unsoundness of regulatory system, the lack of risk early warning mechanism, the deletion of mainly risk managers in operational risk management framework, missing process, the last is that the implementation of the process is not strictly.Different sources of risk need to take appropriate preventive measures to control operational risk in a certain range. This study on operational risk proposed the ways combined with the current situation of the XX Bank Henan Branch. It can optimize personnel type operational risk management environment, build the risk-warning mechanism, improve the operational risk management framework and optimize business processes to guard against operational risk. Optimizing personnel type operational risk management environment based on improving staff motivation appraisal system, building professional quality of staff to enhance the system, sounding employee behavior oversight mechanisms.
Keywords/Search Tags:operational risk, human factors, external events, process factors
PDF Full Text Request
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