Research On The Internal Control Of The Operational Risk Of Commercial Banks In China

As an industry,banking is full of risks.Scientific management sand prevent ions toward various risks have direct effete on the development of banking.Presently,the major banking risks can be generally listed into3types:the market risk,the credit risks and the operational risk.Comparatively,the other two risks have arouse great attention by the fiance institutions earlier,meanwhile,the mature and complete risk management frame work of which have been set up.The operational risk has been exited for a long while,however,it is importance hasn’t been recognized by commercial banks and supervision institutions.Since the90s,a series of serious operational risks events which has brought huge losses in funds to the commercial banks and produced negative effete in the society to the commercial banks have happened in banking industry,so that the operational risk got broad attention and highly recognition from theoretical and academic sector.Because of the late recognition toward the operational risk,the banking industry hasn’t formed an Integrated and unified theoretical system of the operational risk’s definition,classification and management methods,etc, up to now.At Present the academic research on the operation risks mostly follows the credit risk,market risk research ideas and methods,and more emphasis on operational risk measurement and management framework model, involving the internal control Management less.The paper includes five parts. The first part is the bank operational risk overview, mainly expound the meaning of the operational risk, the main characteristics and influencing factors; the second part is the description of commercial bank operational risk overview,it mainly introduces the development status and operational risk status in commercial bank; the third part is the operational risk prevention and empirical analysis of the case about banks. According to the main problems of Bank faces,the paper performs the reasons and causes of operating risk.Besides, through the select of related cases in bank’s operational risk,this paper makes empirical analysis; the fourth part is the ideas of building the framework of bank operational risk management and operational risk analysis of countenneasures. And through the research and analysis of advanced operational risk management framework in domestic joint-stock commercial banks,the paper tries to put forward some ideas for the bank operational risk management framework. At the same time,it proposes some countermeasures and suggestions for bank’s operational risk management.The comprehensive using of basic principles and methods of risk management makes the paper which has a wide study of bank operational risk.This case has the theoretical value and practical significance for bank operational risk management.