A Study On The Problems Of Operational Risk Management In Commercial Banks

Since the 21 st century, China banking institutions and experts began to pay more attention to the management of operational risk in domestic commercial banks. They suggested to establish operational risk management system from the perspective of theory, which were brought out by foreign experts and industries, to control the operational risk. At the same time, Chinese commercial banks put the theory into practice to build up their operational risk management system. Though some commercial banks have already owned the management system, there are still many operational risk problems. B bank is a typical example. It got its foreign strategic investors to help establish operational risk management system when it was at the beginning of setting up. However, with the development, a lot of operational risk cases occurred in this bank 3 years later. So it worth a further study to get to know what should be pay attention to when our commercial banks use foreign experience to build their operational risk management system.This paper is divided into two sections. In section one, the author introduce the basic situation of B bank and its operational risk management system, which includes environment, organizational structure, process and support system. In section two, the author review the domestic and foreign literatures about operational risk management and proposed the related theory, and then summarize the problems as follows: the lack of operational risk management organizational structure, the defect of risk identification, the uneven personnel quality, the failure of operational risk management process and the lack of support system. Then the author analysis the reasons for the problems as follows: the operational risk management culture is not deeply rooted in the hearts of the personal, the principal-agent relationship processing is not dealt with properly and the information asymmetry cause asymmetric information. According to the reasons, the author give 4 suggestions, such as establish operational risk culture and guarantee its implementation, put forward a new management mode called “3 line of defense”, add some new operational risk roles to enhance the effectiveness of the new mode and enhance the information system to promote the operation risk information disclosure. The author hopes to perfect the B bank operation risk management system and contribute to promote operational risk management level in Chinese commercial banks.