Study On The Operational Risks Management Of Rural Commercial Banks In BZ City Anhui Province

Operational risk of commercial banks occurred frequently, with the changes in the size of the banking business and other types of complex business environment and the flexible external environment. Operational risk events are not only particularly laying significant losses on the commercial banks to their property and reputation themselves, but also affect the associated economic and social sectors. Commercial Bank operational risks have drawn the attention of commercial banks and international regulatory organizations. Such as Basel Committee has made the operational risk as a clear risk in Basel II, included to the regulatory capital category, unlike the existing market risk and credit risk, there are less theory and practice research about operational risk, which will be a universal problem in the banking industry, and also makes the operational risk management became one of the weakest areas in commercial bank management.China is in the initial stage of market economy, operational risks in China’s banking system is widespread, improper operation and failure of internal controls and other factors caused serious damage frequently and even bankrupted, and to some extent, affected the country’s financial efficiency and financial security. How to effectively improve China’s commercial banks’ operational risk management has become a top priority. Up to now, few domestic and foreign commercial banks established a very effective operational risk management system, operational risk management processes, management models and tools.Rural Commercial Bank is a product of our social and economic system characteristics,their specific service areas and service subjects, make them helpful supplement and improve to regional financial system.but the establishment of operational mechanisms is relatively slower than its rapidly development, making the rural commercial banks potential operational risks increasingly obvious.Therefore, starting from the inside of commercial banks, especially from the inside because of the commercial banks suffered losses caused by operational risk data view, assess the size of the commercial banks’ operational risks, causes risk, and explore an effective method for controlling the operation of commercial banks called country risk commercial banks important issue of development. The authors themselves engaged in commercial banking supervision, the daily work is to reach the largest rural commercial banks, the authors hope that through the system of rural commercial bank operational risk research, from the perspective of the rural commercial bank’s internal risk prevention, recognition of operational risk, assessment and preventive measures.Rural commercial banks’ operational risk awareness and risk prevention capacity is lagging behind, to enhance the quality and efficiency of development is to promote rural commercial banks to enhance the core competitiveness of rural areas and be a key element to financial stability.This article is to study the operational risk of Chinese commercial banks, in particularly rural commercial banks operational risk, focus on China’s commercial banks operational risk basic characteristics, factors and International Experience and propose a comprehensive evaluation system. The purpose of this study is to focus on the commercial banks, particularly in rural commercial banks to correctly understand their own risk, enhance risk prevention capacity, reduce operational risks a study, I hope to explore this article meticulous system of rural commercial bank risk, each rural commercial banks to clear positioning itself needs to take appropriate measures to avoid the risk for specific rural commercial banks, to promote the sustainable development of their own health as well as China’s rapid economic development efforts in rural areas. Firstly, from the microscopic perspective of operational risk management theory, we clarified the context of rural commercial banks operational risk research, build operational risk management framework; secondly, this article will narrate the details of the status quo of China’s commercial banks’ operational risk management, and take the examples of 4 rural commercial banks in BZ city Anhui Province to analyze the four banks’ operational risk initiatives and achievements, take reference of advanced foreign experience in banking risk management and control; This paper focuses on the management of commercial banks based on full consideration practice, focusing on the theory and practice of combining qualitative and quantitative, standardized, and combined with survey data presented theoretical research framework used in the empirical case study research methods. By analyzing the operational risk management ofBZ City’s 4 rural commercial banks and mainly outstanding issues, and then analyze the reasons for these risks generated, and a brief description of operational risk portion of positive measures taken by these four rural banks; Finally, based on this article problems and experiences of BZ City’s four rural banks risk management,we conclude the paper and make policy recommendations to provide some policy recommendations and practical support for China’s commercial banks, especially rural commercial banks operational risk.The full paper is divided into five chapters, the first chapter is an introduction to background and significance of this paper, former research comment, the main content and methods of ideas, innovation and other issues, leads to the contents of this paper; the second chapter is literature review and related theoretical explanation, starting on the connotation of commercial banks operating risk characteristics from related concepts, classification, and components of operational risk losses theoretically defined, followed by the theory of corporate governance, organizational decision theory and internal control theory, the three major theory of commercial banks operational risk management theory to explain it. The third chapter describes the measures at home and abroad in recent years has taken on operational risk prevention, including the two major aspects of internal and bank regulators, and details of the case study object of this paper, BZ City’s four rural commercial banks in response operational risks and effects of the measures taken, the final part of this chapter analyzes of the gap between domestic commercial banks operational risk management and international advanced experience between the proposed terms for reference. The fourth chapter focuses on the specific performance of commercial banks operational risk, detailed analysis of the reasons for all aspects of operating risk of commercial banks, including systems, employees, and other external factors, and the evidence presented by the relevant case for various reasons.The final chapter, we made effective operational risk of policy recommendations after concluding remarks, including strengthening the banking case prevention, reduce loan concentration risk, capital adequacy and ensure adequate provision of operational risk control personnel factors, system operational risk control (technical) factors, based on operational risk control process factors based on operational risk control external events, and strive to promote China’s commercial banks, especially the development of rural commercial banks regulate suggestions.