The Study Of Construction And Improvement Of Rural Commercial Banks' Risk Management System

In China's financial system,rural commercial banks have long been in a weak position.Compared with large joint-stock commercial banks,rural commercial banks fall behind in operating philosophy,personnel and management capacity,which result in lots of historical problems to be solved.In a stable economic environment where extermal risk events seldom occur,rural commercial banks can meet simple needs of customers just with deposit,loan and exchange business.With the development of economic globalization,the exposure of risk is gradually increasing.The organization and risk management capacity are confronted with new shocks.Whether from the perspective of the development of agriculture,or from the perspective of international regulatory and CBRC documents,the construction and improvement of rural commercial banks5 risk management is of great urgency.This paper combs the theoretical basis of rural commercial banks5 risk management from the perspective of current research and regulatory requirements respectively and builds a general strategy.Furthermore,the author takes JJ Rural Commercial Bank as an example.Starting from JJ Rural Commercial Bank's history and business development status,the author points out that risks mainly exist in system construction,operation mechanism,the level of risks and compliance and audit,using both qualitative and quantitative methods.On the basis of full consideration of JJ Rural Commercial Bank's uniqueness,the author suggests that JJ Rural Commercial Bank should determine risk management policies,improve risk management structure,achieve the goal of whole process management of risks,and enrich risk management tools and methods.With this exploration of JJ Rural Conmmercial Bank's risk management construction and improvement,on one hand,we enable JJ Rural Commercial Bank to further clarify its risk management strategy and objective,enhance corporate governance,optimize organizational structure,and improve internal control and so on,which promote JJ Rural Commercial Bank to become a modem rural commercial bank.On the other hand,the construction of rural small and medium financial institutions like JJ Rural Commercial Bank can have demonstration effects on pushing forward them to improving risk management capacity so as to serve rural areas better in the future.