Operational Risk Management Of Rural Credit Cooperative Union Bill Business

In recent years, as one of the most important way to increase their profits and improve asset quality, bills business has been a favourite for medium and small financial institutions (Including institutions accounted for larger rural cooperative financial institutions, as we called Rural Credit Cooperative Union in this paper). While the bills business of rural credit cooperative union develops rapidly, the operational risk of them has been increased. The risk of bills business is mainly concentrated on the operational risk. While the limitations of their own development characteristics, problems of operational risk management becomes more and more serious and need to be solved imminently. For this reason, it becomes very important and has practical significance for analyzing the operational risk of rural credit cooperative union’s bills business and proposing measures of management.This paper is focused on operational risk of bills business for rural credit cooperative union. It described related theory of operational risk, introduced the status and characteristics for operational risk management and analyzed the rural credit cooperative union’s main operational risk for bills business. In this paper, it proposed the internal and external causes of operation risk, through a comprehensive analysis; and gave suggestions of specific measures and policy recommendations of the external environment, through a quantitative analysis of the risks and combining with the actual situation of rural credit cooperative union; In addition, by a combining of different types of bills business, it also proposed countermeasures for management of bills business, to improve the management measures of operational risk for rural credit cooperative union.