The Research On Operational Risk Control Of Bank Of Communications

In recent years, the operating risk events occurred frequently and caused enormous losses to the commercial banks globally, how to prevent operating risks, and enhance the ability for the operating risk control, and reduce the operating risk loss, has become an important issue for the commercial banks and the regulatory authorities to concern and research. It is more crucial to the commercial banks operational management that how to identify and control the risk on operational link. Bank of Communications, as one of the China’s five major state-owned commercial banks, its assets, the number of outlets, business scope are the leading level in the bank industry, it also has certain representativeness. To research, analyze and solve the problems of the operational risk in Bank of Communications, which could provide a reference and enlightenment for the other commercial banks.This paper selected the fractionize field on the operational risk, on the basis of collecting internal information from commercial banks, with the integrated use of literature research, case analysis, statistical analysis and other methods, starting from the theory, it introduced the advanced theory and the trend of research on the definition, classification, characteristics, regulatory requirements and management framework, measurement and control of the operating risk worldwide, and pointed out that the operational risk is also a narrow sense of the operating risk, by analyzing two typical cases of "Bank of China Harbin HeSong Street branch" and "Yantai bank", it clarified that the internal and external fraud are main forms of the operating risk of commercial banks, the risk distributed in the relatively departments, and the commercial bank insiders are the main causes of risks, all these are the characteristics and current situation of the operational risk of commercial banks in China. In the light of the analysis to the prominent problems, such as the management framework, tools to control risk, system and culture, the concept of risk management and business development relationship and other aspects, it summarized the causes and factors from the operating risk classification, the macroscopic and microcosmic etc.Through studying and analyzing the operational risk of Bank of Communications, this paper pointed out the problems that the internal and external fraud, unstable team, risks from the electronic banking are still exists, and the poor management foundation and execution, contradictions between the internal control system and development were the causes to the operational risk of Bank of Communications. According to the closed-loop management theory, it putted forward that Bank of Communications should develop and applicate professional system on the operational risk management. With examination counseling, assessment process, quality control and so on, we could implement an effective solutions and theory. Finally, this paper also pointed out that the control and prevention of risks from staff, the development of professional risk management tools, and the process banking development are measures and suggestions to improve the operational risk management of China’s commercial banks. From the result of research, this paper could clarify the trend and direction of the operational risk development of commercial banks, and would provide a reference in theory and practice for later reach.