Case Study Of B Bank’s Operational Risk Management

Operational risk is the risk caused by immature or problematic internal procedures, personnel and system or external events. Operational risk, credit risk and market risk together are so-called three risks in commercial banking territory. Comparing with credit risk and market risk, operational risk was accompanied at the beginning of commercial banking establishment. But it was being noticed and attracted attention till later of90s20century. After operational risk triggering frequent events nowadays in China, it attracts high attention from commercial banks and China Banking Regulatory Commission.B commercial bank is from the minority nationality region, it busted its business through rapid branches setting-up, also by taking advantage from the governmental preferential financial policy generated to encourage and support the development of small micro-enterprises. Although rapid layout of the institution, the commercial continues to expand, rapidly growing workforce makes the bank facing tough challenges on operational risk management. The writer combines with working experience from the practice, trying to analyze typical operational risk management events of B commercial bank, and to trace the reasons of its operational risk, in order to propose a solution and provide experience and practical reference to operational risk management of the B commercial bank, which will at the same time also provides some operational risk management of other commercial banks.This article describes the risk management event of the four operations in B commercial bank, and by referring to the New Basel Capital Accord on operational risk management theory and the COSO risk management theory; these four events were then analyzed. The results demonstrate the B commercial bank’s operational risk management issues was caused by imperfect internal procedures factors, human factors, system factors and external factors. For the causes of the problem, the writer suggests B commercial bank to carding risk management system, based on constructing more clearly more certain risk management framework, to unify the risk management concept, make implement unified risk management culture, to build advanced risk management operation system, in the daily operational risk management and external supervision forming force and so on four aspects improve operational risk management, improve operational risk management level.