Research On The Counter Operational Risk Management Of The Postal Savings Bank Of China In H Branch

With the process of economic globalization, the continuous development of science and technology, enterprises face great opportunities but also ushered in more challenges. Strengthen internal control to establish a great corporate governance mechanism is the voice of all enterprises, especially the commercial banks which works on risk. In the early time, Chinese commercial banks which protected by the planned economy was always profitable. After China joined the WTO, with the continuous progress of the market economy system and the growing openness of Chinese market, the state-owned commercial banks is from a purely state-owned enterprises to joint-stock enterprises which is self-financing. And its special products-currency leads to more risk than other enterprises. In recent years, due to the immature of commercial banks operational risk management, the unprofessional and shortage of risk managers and the missing of operational risk culture, the commercial banks faced more operational risk cases with irreversible loss of banks and customers. The impact of operational risk cases in commercial banks is not suitable for long-term stable development of the national finance. From the Comprehensive risk management and the goal of internal control, Chinese commercial banks began to increase the emphasis on operational risk management, which designed to reduce losses caused by operational risk to achieve long-term stability and development.This paper aims to put forward the author’s idea about the commercial banks of operational risk management with the following six aspects. The first part is the introduction, this section shows the research background, significance of commercial banks operational risk and the research scholars’ results of commercial banks operational risk, and describes the framework and innovations and the shortage of the article; the second part elaborates the theoretical foundation and the definitions and characteristics of operational risk about commercial banks; the third part gives a brief presentation of the Postal Savings Bank of China in H branch and describes the reasons of operational risk in terms of personnel, institution, organizational framework and other existing problems; the fourth part is about the action of counter operational risk management system in the postal savings bank H branch; the fifth part for the Postal Savings Bank of H branch give the solutions about the operational risk management; the sixth part is the conclusion and prospect, which concludes the paper and look forward to the follow-up studies.The special part of this study is about the Postal Savings Bank of China. In 1986,the recovery of Postal Savings aimed at the absorbing the savings for Chinese government, the business model is to take "no loan only deposit" approach. With the absorption of savers’ deposits, the Postal Savings Bank of China earns profits by taking the interest rate differentials from the People’s Bank of China. This business which is simple and Risk-free makes the Postal Savings Bank of China lacking of learning about various types of risk. Until 2007,Postal Savings Bank of China Co. Ltd. established. In order to increase market competitiveness and improve the market shares. The Postal Savings Bank of China increase all types of business and gradually set up business credit, business, intermediary and other types of business. The sudden increase in business types, complex business processes, staggered system of counter leads to highlight the counter operational risks repeatedly. In recent years, the Postal Savings Bank of China increases its counter operational risk management’s construction, but with the various internal and external reasons and the lack of data cause the slow process of the counter operational risk management study.