A Study On Operational Risk Management Of ADBC Credit

This article is focused on the operational risk of credit area of AgriculturalDevelopment Bank. Through facts and examples of the operational risk of credit inthis bank, the classification, manifestation and major features of this kind ofoperational risk are generalized. Then this article raises the problem of the crediroperational risk in Agriculture Development Bank and analyses the reason for itbefore the strategies come out for the purpose of the effective management on the risk.With the revolution and development of Agriculture Development Bank, thecontradiction between its business development level and it’s capability ofrisk-preventing has become more and more obvious. Recent years, various kinds ofcredit operational risk has brought great loss to the bank, which has become one ofthe basic risks for this bank to manage. As for most risking credit in AgriculturalDevelopment Bank, the central factor for credit risk is the credit operationalrisk.From the positive management point of view, the emphasis should be theoperational risk in the credit area. Management and study of credit operational riskmust be focused in order to strengthen the control of credit risk.Compared with theadvanced business bank in China, Agricultural Development Bank has a long way togo in the area of the knowledge of risk-preventing and capability of management.How to strengthen the management of credit operational risk, the recognition andcontrol of operational risk and how to prevent the credit operational risk have becomean important task for Agriculture Development Bank at this moment.This article can be divided into four parts. The first part is a introduction of thebackground for the establishment of Agricultural Development Bank and the processof its business development, offering the background, purpose and value for thearticle. The second part offers the definition of credit operational risk, describing thedevelopment and present state of credit operational risk in this bank, and analyzingthe classification, manifestation and major features of this risk combined with cases. The third part analyzed the problem of credit operational risk in AgriculturalDevelopment Bank and the reason for its existence from five aspects, namely, theuncompletion of credit system in the society, the uncapability of the inner control, thelow level of employees’ quality, the operational imperfection in the process of creditbusiness and the guarantee of credit and the management of quality. The fourth partraises the concrete strategies for it. First, the execution of inner control method shouldbe improved. Then, the admission of loan should be stricter, and the risk control ofmajor part for loan should be strengthened. The third is the improvement of themanagement of credit guarantee. Next is the intensification of the alarm of credit risk.And the final is the strengthen of the management quality.