Study On The E-banking Risk Management Of HS Bank

With electronic banking being accelerated by the popularization of the Internet and the emergence of electronic business, the traditional management model and service mode of banking industry have experienced great changes. Compared with traditional banking, electronic banking has many attractive advantages and features, such as flexibility, openness and the mode of self-service. But meanwhile, there exist many risks for electronic banking. The frequent occurrence of risk events and cases has sounded the alarm for its risk management. The new characteristics of the risks electronic banks face pose challenges to banks themselves and the supervision authorities. Therefore, no matter it is from the perspective of theoretical study or the angle of the practice of risk management of commercial banks, urgent demand has been put forward for the case studies of risk management of electronic banking. HS Bank, an enterprise dedicated to financial service, has high reputation in Anhui Province and even in China. Its electronic banking is also developing rapidly. The paper has a profound study of the theories about risk management of commercial banks and the risks of electronic banking. With the problems the electronic bank of HS Bank has in its development as the starting point, it systematically expounds the risks, problems and the corresponding solutions of the electronic banking of HS Bank.The paper includes six parts. Part One is the introduction which describes the background, the significance, the idea and the method of the study, reviews the related literature home and abroad, as well as states the innovative and the weak points of the paper. Part two gives definitions for the concepts of electronic banking risk and risk management and introduces the basic theories about risk management, which provides theoretical basis for the risk identification and prevention of electronic banking of HS Bank. Part Three, based on the content and category of electronic banking of HS Bank, points out the situation of the development of electronic banking and analyzes the weaknesses of its risk management and their causes. Part Four, aiming at the weaknesses and problems, constructs a system of electronic banking risk management for HS Bank based on the levels of risk management, internal control, internal audit, etc. Part Five proposes various measurements for improvement, including four suggestions and solutions. Part Six is a conclusion of the present study and a vision for the future researches.The innovative point of the paper lies in the research content. Electronic banking, with its rapid development in the age of technological innovation and progress, becomes the new subject of study. Based on the practice of risk management of electronic banking of HS Bank, it provides a case basis for the theoretical research of risk management and attains the objective of combining the theoretical research with practical application. It also applies the concepts and methods of internal control and internal audit into the risk management of the electronic banking of HS Bank, which strengthens its risk prevention and control.