A Case Study On The Operational Risk Of A Microfinance Company

Under the advocacy of inclusive finance, Chinese micro finance is booming. Micro finance is the service to individuals, small and medium enterprises in the financial services industry,and also because of the characteristics of the "micro", the customer is "small" and "scattered",and the risk is not easy to be controlled, which often causes losses to the company.Market risk and credit risk have been studied by many scholars, but the study of operational risk is still lacking. Operational risk is very common, which widely happens in every part of the company, and efficient operational risk management will greatly induce the company's efficiency, so it is very important to improve the company management level of operational risk.This paper uses banking operational risk management processes as the theoretical basis,and adopts the method of case analysis,studies the deep reasons of A company operational risk cases, then puts forward some suggestions to solve operational risk issues.A company's approval process consists of pre-loan department, mid-loan department,after-loan department and the policy of the loan.This paper mainly focuses on pre-loan department, mid-loan department and the policy of the loan department to identify the existing problems, and puts forward suggestions of operational risk identification,operational risk assessment, operational risk control, and operational risk reporting, and hopes to help companies to establish a sound operational risk management processes.But because of the lack of relevant data,this paper only uses qualitative research methods. In the future,we look forward to use a combination of qualitative and quantitative methods, and put forward more effective operational risk management methods, hoping for the companies form a complete operational risk management system?...