Research On Enterprise-wide Risk Management Of Hunan Branch Of Bank Of Communications

What commercial banks manage is risks. Commercial banks benefit a lot from business risks. Meanwhile, Business risks bring a big ch allenging to commercial banks. The business rules of commercial banks are safety, liquidity and profitability. Among them, the safety and liquidity are the most important. Whether the commercial bank can effectively control their business risks concerns the achievement of goal of safety and liquidity. Meanwhile, with the strengthen trend of mixing management in global financial industry. The strengthen trend of integration between our country’s banks and the global financial industry, the endless financial innovation, The business risks of the commercial bank is more and more complicated, which adds much more difficulty to risk management for our commercial banks.The risk management theory of the commercial bank developed with the practice of the development of the practice, which has followed by asset management theory, liability risk management theory, assets and liabilities risk management theory, capital adequacy rate of management theory and the Enterprise-wide Risk Management theory.Under this background, the structure of overall systems of Enterprise-wide Risk Management(ERM) for our commercial banks has been a primary problem. As the direct and final profit center and risk center of the head office of Communication Banks. The structure of overall systems of Enterprise-wide Risk Management(ERM) of Hunan Branch Bank has important practical significance. The author combined his experience from the Hunan branch bank of Communications Bank with the research of the ERM theory, researching the present situation of the risk management, the achievement it have gotten and the problems it have to face up to of the Hunan branch, basing on which the author constructed the Enterprise-wide Risk Management systems of the Hunan Branch, besides this, the author put forward the measures of implementation safeguard.The basic conclusions of the research are as follows: the risk management mechanism of the Hunan Branch was gradually perfect. But there were some problems of the Hunan Branch such as the increase of the industry credit risk, the backwarding of the market risk management methods, and the lack of the system of the operational risk tube theory, the lack of the risk management personnel. Therefore, the author suggests to construct the ERM system from the following several aspects of the Hunan Branch: To construct the target of the ERM system; to improve and refine the risk management framework; to improve the credit risk management system; to innovate the advanced tools and methods and improve the level of the risk management of the market risk, making full use of the advanced measurement approach and tools to enhance the level of operational risk management; to improve the cooperation compliance risk management system. Finally, the research suggested the guarantee measures for the implementation of ERM system, which include the organization security, system security, system resources supply security, personnel with security and human and environmental security and so on.