Analysis On Operational Risk Management Of China Rural Credit Cooperatives

Finance is the centre of modem economy. The rural financial relative lag is one of the most urgent and one of the most obvious problems which is an obstacle that baffles the development of our country’s rural. Rural credit cooperatives are not only the banking financial institutions, but also the primary driving force of one party economy. They play a decisive role to ensure the steady development of the rural economy and to promote the construction of Chinese new area. However, because of its own operating characteristics and its special status in the rural economy, making it almost has all the conditions of operational risk. That is, outlets, wide distributions, long front, manage difficult. It leads to more serious concealment and diffusion of rural credit cooperatives financial risks, leads to factor-induced increase, uncertain factors rise and harm increase gradually and results in operational risk loss incidents occur frequently, which restricts the further development of rural credit cooperatives. Therefore, rural credit cooperatives have to face the problem of operational risks and have to strengthen the management of operational risk. In a risk environment how to set up its own characteristics of operational risk management system and to adopt effective operational risk management strategies has become an urgent problem in process of development of China rural credit cooperatives.This paper focus on the theme of "operational risk management of rural credit cooperatives", according to the risk management process, answer it both in qualitative way and the quantitative one, and put forward some suggestions to improve the operational risk management of rural credit cooperatives. According to the principle of theory with practice, firstly, summarizes the domestic and foreign theory of operation risk management and its related content, to build a starting point of the operational risk management of rural credit cooperatives, laid the theoretical foundation for the following writing. The next, proceeding from the realities of rural credit cooperatives, using descriptive statistical objective pointed out that the current situation about rural credit cooperatives operational risk loss increases obviously and improper operation risk management. It stated that personnel, process, system, management system and external environment problems all these factors will result in operation risk, influence by risk management effectiveness. Help to realize the full recognition and analysis of operational risk of rural credit cooperatives. Thirdly, in view of how to evaluate operation risk factors of rural credit cooperatives, established the evaluation index system of operational risk. Combined with the characteristics of each index, establish an analysis model of four levels of detailed step by step. The use of model analysis and evaluation on the operational risk can make the operational risk influence qualitative factors into measurable value for quantitative analysis and research. Thus, to specify the appropriate risk prevention measures.The results showed that the root of rural credit cooperatives operational risk lies in the defects of the system. Therefore, the current rural credit cooperatives should grasp the principal contradiction, clear priorities. Meanwhile, attention and improvement significant problems mainly exist in the rural credit cooperatives itself. While the key to strengthen the construction of system, but also should pay attention to the training of operational risk of knowledge workers, and constantly improve the quality of staff; standardize the business operation process, ensure the effective implementation risk management work; improve the management level of the operational risk; strengthen the external supervision, create a good environment for operational risk management; build electronic network comprehensive information system, ensure the system stable operation. In order to rural credit cooperatives in the daily operation of the process, can succeeded in preventing the risk, answering the risk and dealing with the risk. Finally, get real operational risk management results.