Research On Risks Management Of Commercial Bank Operation Process Reengineering

The operational risk of the commercial banks has been becoming a more and more serious problem and gained more and more attention as the finance innovation improves and finance technology develops. Recently, there are several cases that banks suffer huge losses or even go bankruptcy because of the operational risks. The Basel Committee considered the operational risks as one of the three top risks of the commercial banks in the “The new Basel agreement” released lately and counted the operational risks in the calculation of risk weighted capital in order to adapt to the development of the situation, coping with risks and challenges. This action of the Basel Committee makes the operational risks gained more and greater attention. Since the Reform and opening-up, the market economy of China has developed significantly. The shortcomings of the traditional management mode of the commercial banks have been revealed gradually. After China joined the WTO, banks with foreign capital run into the mainland market. The commercial banking of China suffers a great impact. Nearly all the commercial banks start a “Process reengineering” in order to adapt to the new market environment and to realize the long-term development targets. To a certain extent, this reform eased the problem of the original operation risks. However, commercial banks of our country appeared some new operational risk during operation because of the characteristics of the existing commercial bank business process reengineering, the survival environment of commercial banks in China and the market economy environment and other factors. These risks not only should but also must be paid enough attention, to minimize the losses caused by such risks.This paper attempts to study the operational risk for the commercial banks reengineering, by using the author’s practical work experience. This article combines theory with practice. This paper is roughly divided into five parts. The first part of the essay is the introduction, mainly introduces the background and significance of this research. This part also describes the research methods and research ideas. The innovation and deficiencies in this thesis are described at the end of this part.The second part is a review of the operational risk management theory of commercial banks. At first, this part briefly described the theory of the commercial bank operational risks. And then this Part introduces the domestic and foreign research results and the status quo for the theory of commercial bank operation risks and the theory of business process reengineering.The third part is the empirical analysis of operational risk of the process reengineering. This chapter applies author’s actual work experience taking P bank as an example, introduces the project of operation process reengineering of the bank. With live examples, the operating process reengineering of the new operational risk are described, and then this article analyzes the process reengineering could lead to new operational risks. The last part summarizes the causes of new operational risks after the operation process reengineering.The forth part of the article is the prevention and control measures of the operational risks. On the basis of the former analysis, the formation reasons and characteristics of the new operational risks can be known to the public. Then, the corresponding solving measures are put forward in order to lighten the effect of the risks.Finally,the paper draws the conclusion. This Part reviews the previous analysis, and then makes a conclusion that the measurements raised can be effective coping approach to the new operational risks. At last, the prospect of commercial banks is discussed.