The Research Of Enterprise Risk Management For The Commercial Banks In China

In the context of the subsequent impact of the financial crisis inChina’s commercial banks, the development and transformation ofChina’s banking industry, as well as comprehensive Basel implementationrequired by CBRC, the thesis focuses on the "risk management"–thatcommercial banks deal with all the time in daily business operations, andis closely related to the profitability and even the sustainability of bank,in order to propose the methodology and practical approaches of riskmanagement, that is applied to the commercial banks in China.The thesis starts from understanding the history of riskmanagement in commercial banks, analyzes the evolution of banking riskmanagement concept with the change of macroeconomic environmentand banking business, and then introduces the concept of enterprise riskmanagement. By studying two mainstream concepts of enterprise riskmanagement, that is―enterprise risk management framework under theNew Basel Capital Accord‖and―COSO enterprise risk managementframework derived from internal control framework‖, and analyzing thesuccessful case of risk management in world’s leading banks, the thesisworks out the practical methodology and approaches of the enterprise riskmanagement in China’s commercial banks. The main part of the thesis isbased on three major risk domains-credit risk, market risk and operationrisk, to respectively analyze the gap between current practice in China’s commercial banks and advanced practical experience and regulatorycompliance requirement，and to finally propose the recommendationsfrom various perspective, such as management strategies, organizationalstructure, policy and procedures, risk assessment tools, and reportingsystems., etc.