A Research On The Operational Risk Management Of Chinese Commercial Banks

Because of the great changes in the financial environment, the operational risk in commercial banks becomes more complex and diverse, and its impact is also more extensive. Operational risk events not only bring huge financial losses and reputational damage to commercial banks, but also affect the normal development of the whole national economy. In order to improve the operational risk management of commercial banks, regulators have issued a series of policies and documents,and commercial banks have made a lot of efforts. However, there are still many deficiencies and problems in the operational risk management of commercial banks in China. This paper studies the operational risk management of commercial banks in China, trying to reveal the existing problems and put forward reasonable suggestions for strengthening operational risk management of commercial banks in China.By analyzing the relevant literature, we find that the researches on the operational risk management are mostly qualitative analysis at present. The advanced measurement methods don’t adapt to the current situation of commercial banks in China. Using the income model to measure the operational risk of commercial banks in China is reasonable and scientific. This has been recognized by the majority of scholars. Taken the 16 listed commercial banks as an example, this paper first analyze the current situation of operational risk management in Chinese commercial banks by using the method of online research. Then, the overall level of operational risk,classification level and the size of the operation risk are measured by the income model, and the operational risk of commercial banks with different property rights is compared. After that the absolute value for the operational risk in respective commercial bank is interpreted as a explained variable. Select the indexes from four aspects of operational risk management as explanatory variables. The four aspects are organizational structure, culture and process and information system of operational risk management. This paper uses the empirical model to analyze how the elements of operational risk management in Chinese commercial banks affect the size ofoperational risk. Finally, this paper puts forward some reasonable suggestions on how to strengthen the operational risk management.