Research On Operational Risk Of Commercial Banks Based On Human Factors

Since the 20th century, commercial banks have been facing more complex business environment. Operational risk events are happening more and more frequently, and commercial banks are often at great loss. In the year of 2004, operational risk is formally incorporated into the capital regulation system of Basel II. Operational risk management of commercial banks has got a lot of attention. Operational risk measurement and risk management are the focuses of recent research. China’s commercial banks’ operational risk control theory and ability still need to be improved.This paper is divided into five chapters. The first chapter is introduction, stating the research framework and innovation in this article. The second chapter is an overview of operational risk in commercial banks, including the definition, the status quo and problem of operational risk management. The third chapter is about measurement of operational risk and empirical analysis based on Basel II. It first introduces top-down model and bottom-up model, then uses the loss distribution method and Monte Carlo method to estimate value at risk and uses the revenue model to do regression analysis. The fourth chapter focuses on the impact of staff on banks’ operational risk. The fifth chapter put forward some recommendations on operational risk management based on previous analysis.