Research On The E-Banking Risk Evaluation Of ICBC

The Industrial and Commercial Bank of China (ICBC) was established in1984. Over20years of reform and development, ICBC has embarked on a steady road of coordination in terms of its quality, efficiency and development scale. It ranked the first place among domestic commercial banks in China in the asset size. In the face of complex and changing international and domestic circumstances, ICBC has been concentrating on changing its development mode as well as its management structure and promoting business innovation. As a result, ICBC has maintained a steady increase in both its services and profit and continued to be the first listed bank around the world with its profit, market value and brand value in the first place.E-banking service, as a brand new financial service and management channel, has not only brought about new challenges and opportunities for the traditional bank services, but also improved its service level to a great extent. On the other hand, banks providing this service face new risk and difficulties. Therefore, how to prevent the risk of e-banking efficiently becomes an urgent problem to solve so as to guarantee the safety and soundness of the financial sector. Compared with that of western countries, the e-banking service in China still lags behind with lack of awareness and systematic study on the relevant risk factors. Hence, it is necessary to carry out more studies on the risk factors related to e-banking and to explore rational risk management mode in order to improve the e-banking risk management level.This paper focus on the study of the risk factors in the aspects of e-banking technology and the service using the risk management theory based on an analysis of the current status of e-banking in ICBC. The methods of qualitative and quantitative analysis are applied to identify the e-banking risk. The risk assessment system targeted at the e-banking service in ICBC is set up based on the assessment index selected from two dimensions of technology and service. Besides, an overall assessment of the e-banking risk is made after calculating the risk index weights at all levels through the analytic hierarchy process. In the end, a few proposals and suggestions are given on how to guard against the e-banking risk in ICBC efficiently.This paper does a comprehensive analysis and appraisal of e-banking risk in ICBC and comes up with realistic and specific precautions against risk, thereby improving its risk management level and ability.