Research Of Operational Risk Management Of Bank Of Beijing

Different from other enterprises, the bank is a special enterprise of currency, its risk relative to other firms would be much higher; therefore, the quality of the risk management can not only affect the situation of banking business but also closely related with its existence. All banks, especially commercial banks and other financial institutions should attach great importance to the establishment of the relevant research and prevention system to avoid the possible loss caused by operational risk. Operational risk as a new risk is now an important study topic for the financial market all over the world.The purpose of this paper is to study the current situation of operational risk management system of commercial banks, and to find and analyze the causes and characteristics of the problem, and then propose an effective solution. In this paper, the operational risk of commercial banks is defined and its classification and characteristics are summarized. And then indicates the target and general framework of the operational risk management system. This paper takes Bank of Beijing as an example, and analyzes its current operational risk management system and framework, and points out that the Bank of Beijing has basically established a relatively sound risk management system, formulated a clear management objectives and more effective organizational structure and management process. However, there are still some risk points, these risks are mainly concentrated in personnel, process, moral, external factors, etc. In this paper, Bank of Beijing’s risk management system is combined with the balanced scorecard method, and its effectiveness is improved from the financial, internal processes, learning and growth, customer service four dimensions. Also, relative corresponding supervision and safeguard measures are established to better access improved risk management system.In the end, this paper summarized the feasibility of the combination of the operation risk management system and the balanced scorecard, and clearly the direction of further research in the future. It also provides valuable exploration for the identification and evaluation system of operational risk for China commercial banks.