A Research On The Influence Of Corporate Governance On Operational Risk Of Commercial Banks

In the context of economic globalization,the commercial banks,as the main body of the capital market and an important part of the domestic financial industry,have more opportunities and take more responsibilities.But at the same time,the commercial banks need to face more challenges because of complex and severe situation.In recent years,China's commercial Banks frequently broke out operational risk events,and the loss amount cannot be underestimated.Moreover,the domestic operational risk loss database is still in its infancy,so the research on operational risk is not mature enough.Therefore,it is of great significance to study the measurement and management of operational risk based on the development status of China's financial industry.The research contents of this paper are as follows:Firstly,this article sorted out large number of domestic and foreign literatures,and found that the loss distribution method is more suitable for domestic commercial banks' operational risk measurement.so the 1849 operational risk loss cases of 248 domestic commercial Banks from 2000 to 2019,which were publicly reported,were selected as the research samples.The loss distribution model was used to test the loss frequency data and loss intensity data,then Monte Carlo simulation method was used to calculate the risk capital that should be set aside for the total loss events and all kinds of loss events of commercial Banks,and the property of left truncation of the loss data is fully considered for improvement.After fully considering that the loss data has the nature of left truncation,the model is improved.Finally,under the confidence interval of 99.9%,the operational risk capital that should be calculated and set aside by commercial Banks in one year is 487.37 billion yuan.For internal fraud loss events,325.804 billion yuan should be withdrawn;For external fraud loss events,81.254 billion yuan should be withdrawn;For other events,80.312 billion yuan should be withdrawn.Secondly,this paper focuses on the influence of corporate governance mechanism on operational risks of commercial Banks,and the mechanism is as follows: Improper incentive mechanism can easily cause employees' motivation to touch operational risks;It is difficult for unreasonable decision-making mechanism to form a restricted working environment and make risky decisions;The loose supervision mechanism makes the potential operational risk possible and increases the loss of operational risk.This paper takes nine large Banks in China as the research object,establishes the panel data model and makes an empirical analysis on the relationship between corporate governance mechanism and operational risk.It is concluded that the defects and deficiencies of corporate governance mechanism are one of the causes of frequent operational risks.Finally,some suggestions are put forward for the operational risk management of commercial Banks in China.First,cultivate the risk management culture of commercial Banks and guard against moral hazard;Second,establish operational risk loss database as soon as possible;Third,improve the corporate governance mechanism of commercial Banks and improve the internal control system;Fourth,improve the external supervision system of operational risk.Although the main cause of operational risk is personnel,the fundamental cause is the non-standard corporate governance system of commercial Banks.Commercial Banks should "sound the alarm bell" and improve the corporate governance mechanism.Nowadays,Commercial Banks carry out comprehensive risk management,from the perspective of corporate governance mechanism to Analyze the causes of operational risks is conducive to providing theoretical support for subsequent studies.It is a correct and effective measure to improve the current situation of operational risk by improving the corporate governance mechanism,which is helpful to reduce the incidence of operational risk and improve the efficiency of risk management in commercial Banks.