A Bank Operation Risk Management Research Under The New Framework Of Regulatory Capital

Since the 1990s, commercial bank operation risk incidents broke out both inland and abroad.Some banks failed because of the huge losses, and some banks reputational damage is serious.Operation risk gradually was concerned by the banks.The relevant theoretical research has also begun to rise.With regard to the study of operational risk, the Basel committee is early to define the definition of operational risk, and put forward the operational risk measurement method.It bring the operational risk into the risk capital and regulatory frameworks.Furthermore,It has released the Basel capital accord and a lot of research guidance documents.The Basel capital accord and the relevant documents as the international regulatory standards introduced into our country, the China Banking Regulatory Commission has issued a series of regulations for the implementation of Basel Agreement Ⅱ,and bring the operation risk management as the main risk management function into a comprehensive risk management system in 2008. In June 2012, the China Banking Regulatory Commission issued "commercial bank capital management approach (trial)" (" capital method ").According to the approach.all commercial Banks in our country, must build the operational risk management system suitable for itself, and choose appropriate method to make operational risk regulatory capital. Under the new regulatory capital framework, how to adapt to the regulatory requirements, in order to strengthen the management of operational risk,has become one of the focus of commercial banks to research and solve the problem.Based on the domestic large state-owned commercial bank, A bank, for example, in the domestic and foreign commercial bank operation risk management and the theory of measurement and its operating risk present situation analysis, thought to implement new regulatory requirements, should choose the suitable operational risk capital measurement method, perfect operational risk management system, and to make the two sides organic combine, promote each other. Therefore, this article uses the method of normative analysis and empirical analysis. Mainly by measuring and evaluating the level of operating risk of A bank, analysis of A large state-owned commercial Banks such as A bank operation risk type, reveal what makes the risk of the problem.According to the measures for capital and combining with China’s financial market environment, it puts forward effective management and measures for operational risk. On the basis of this thought, the full text is divided into six parts.The first part is briefly on the connotation, classification, operation risk in commercial bank operation risk management in this paper, the main content and the theory of quantitative methods.Then I analyse the operational risk events distribution characteristics and the main problems exposed with A bank’s internal loss data. In the following part, after using the standard method and the internal measurement method respectively, based on A bank operation risk status.the author gives the empirical analysis and compare the result of the empirical analysis.In addition, the author pointed out that from the point of A bank operation risk management status, in accordance with the procedures from simple to complex, on the basis of the standard method, the gradual transition to advanced method, should be a practical choice. Finally, A bank should conform to the new regulatory capital requirements, and gradually achieve the international advanced level of bank.The author puts forward to strengthen operation risk management and control from the angle of risk management culture, the risk management framework, the incentive constraints mechanism, human resource management and information technology, and the legal risk management.First of all, A bank should strengthen the operational risk management culture construction, improve the system of internal control, and give prominence to the process control concept; At the same time, in order to get a permission to use the advanced measurement regulators,the bank should improve operational risk management framework, and be closely integrated assessment and control.Secondly, the bank should strengthen the appraisal of branches in the capital to take up with conduction capital pressure, formulate the long-term incentive compensation system, and improve the mechanism of constraint.Next, Abank should strengthen human resources management, perfect the important post personnel access and evaluation mechanism, and focus on building operation risk management professional team. Finally, to actively cope with the effects of the external environment,the bank must enhance the level of information technology risk management to provide basic guarantee for operational risk management and measurement, and continuously strengthen the legal risk prevention.