Study On The Operational Risk Management Of China Construction Bank Under The Mode Of Front-back Stage Decoupling

With the further opening of the domestic financial system since2000, domestic commercialbanks have ushered in more fierce competition. By relying on the increasingly powerful ITtechnology, the intensive back stage has been achieved in foreign commercial banks. The domesticcommercial banks have paid great attention to the effectiveness brought by the bank processreengineering and begun to learn from and try to apply this mode in succession. This mode, inwhich the back stage provides security and supports while the front stage is responsible formarketing and service functions, is referred to front-back stage decoupling and is also the specificmanifestation of bank process reengineering in current commercial banks.China Construction Bank (CCB) proposed to implement the first generation of transformationof the reform of operating system in2006, launched the second generation of project reform fordeepening the front-back stage decoupling at the end of2008and carried out the third generation of“three integrations” including network integration, teller integration and marketing integration in2014. The purpose of implementing front-back stage decoupling step by step for CCB is to preventthe operational risks incurred by the great changes of business process and slowly releaseoperational risks in the progressive way. In the meanwhile, the mode of front-back stagedecoupling sets a higher standard for the risk management system and inner control system of CCB.It is in dire need for applying the theories of operational risk management to guide the promotionof the mode of front-back stage decoupling which is thus rationalized and perfected.Through the study on operational risk management of CCB under the mode of front-backstage decoupling, this paper has two purposes. Firstly, the paper aims to provide a theoreticalreference for the third generation of transformation of front-back stage decoupling and the smoothrunning of the future transformation of CCB so as to strengthen the control and supervision oversubsequent operational risks. Secondly, the paper aims to put forward suitable countermeasures onoperational risk management and offer valuable recommendations for improving the operationalrisk management system of state-owned commercial banks by studying the possible risk problemsthat may be caused by the front-back stage decoupling of CCB, considering that the theoreticalresearch and practice of the front-back stage decoupling in the current state-owned commercialbanks are in their infancy.The paper expounds the concept and the definition and framework of operational riskmanagement of the front-back stage decoupling in commercial banks, points out the possibleoperational risk factors and the corresponding types of risk loss under the mode by studying the current situation under the mode of the front-back stage decoupling in commercial banks, appliesthe methods of data statistics and case analysis to find out and verify the possible causes and maintypes of operational risks under the model of the front-back stage decoupling of CCB bycombining the current situation in the process of implementing the mode of the front-back stagedecoupling of CCB, learns from the representative commercial banks in foreign countries, namelythe advanced experience of operational risk management of Deutsche Bank and Bank of America,adopts the method of combining the operational risk practice of the front-back stage decoupling ofCCB with the theories of operational risk management and raises the strategies in four directionsbased on the basic principles of selecting the strategies of operational risk management. The fourstrategies include perfecting the independent organizational structure of operational riskmanagement, improving the process of operational risk management, exploring the tools andmethods of operational risk management and strengthening the environmental construction ofoperational risk management. In this way, the paper hopes to perfect and establish reasonableorganizational structure and provide motivation for the sustainable development of commercialbanks so as to realize effective and valuable front-back stage decoupling with controllableoperational risks.