Research On The Internal Control Of The Operational Risk Of Commercial Banks In China

Influenced by the environment in which business and commercial banks in the course of business will face a variety of risks, effective risk prevention and management is key to the sustained and healthy development of the bank. From the perspective of risks facing the banking industry at this stage, most can be attributed to credit risk, market risk and operational risk of the three categories. From the point of view of the banking sector risk research, has formed a relatively complete credit risk and market risk management methods and systems, but as one of three major risks operational risk did not cause the banking institutions, regulatory authorities and scholars’attention. Until the late of20th century, after the international banking system has undergone a series of banking industry caused heavy losses of operational risk events, operational risk management, and it caused great theoretical research community, academia and the banking industry’s attention. However, the existing research on operational risk is still using commercial bank credit risk research, ideas and methods of market risk, operational risk management framework established by a mathematical model, the lack of research on internal management of commercial banks operating risk characteristics.First of all, this paper makes research on the theoretical basis of the operational risk management of commercial banks, combing the current domestic and foreign scholars on commercial bank operational risk research results and the theory of internal control. Inquiry between nternal control operation risk and bank contacts from the definition, characteristics and other aspects of operational risk in commercial bank, demonstrating the importance of internal control and management in the operational risk management in commercial banks, lay the theoretical foundation for the next analysis.Secondly, with the analysis of the present situation of operational risk management of commercial banks in China, the main cause of the occurrence of operational risk. The results concluded that the bank’s internal control system is imperfect or even the main reason for the failure is the moment China’s commercial banks operational risk occurs. Among them, lack of bank internal control environment, risk supervision system, nformation system and emergency measures are the direct cause of China’s banking operation risk. Finally, this paper explored the problem, put forward the construction of the operational risk management system of commercial banks of China policy recommendations, in order to promote the level of the operational risk management of commercial banks to improve.