Design And Implementation Of Capital Risk Management System For Commercial Banks

Funds business is one of the main businesses of banks.Faced with numerous risk factors,such as market risk,operating risk,credit risk and legal risk,banking operation has been faced with great threats,for which it is of great significance to conduct risk management for the capital business.In recent years,many banks are stepping into the independent research and development,or purchasing of the risk management system for the capital business.It aims to integrate the capital transaction management function dispersed among many business departments,realize the integrated complete flow scheme of business management and realize risk management as well as the data interface management between numerous information systems.In this way,transaction process management,limit regulation,risk measurement and accounting treatment,etc.have been integrated organically through the effective use of IT means,thus forming a synergetic development mechanism between bank market risk and capital business management.During the development process of the capital business of the ??bank,some measures and methods relating to capital business risk monitoring have been established;however,there is still lack of complete and effective risk management system for capital business,which has impeded rapid and sound development of the capital business.In the paper,analysis has been conducted on the existing problems in the capital business risk management process of bank and their causes.Moreover,aimed at the practical situation,systematic design is conducted.Eventually,it will thus establish and perfect the risk management system for the capital business,improve the working efficiency of risk management and promote the integration of flow integration of front,middle and back stages as well as enhance the competitiveness of bank during the industry and the market.According to the overall design objective of the system,functions are regulated as follows:Timely and comprehensively supervise the market risk through risk management numerical analysis on foreign exchange transactions,capital business on the currency market,derivatives investment,etc.Optimize the financial statements system according to the requirement of risk monitoring,so as to further strengthen the control on the market risk supervision.Research and set the authorization parameter system and risk limitation system according to the investment management strategies,and conduct real-time,autonomous and concentrated management for the front desk transaction.Quantify market risk based on the system development VAR model,so as to provide risk pricing basis for front desk dealers.It aims to provide risk measurement level for the middle stage and provide scientific basis for the investment decision-making of the management.The system adopts C/S framework,and Java program is used for design and development,thus eventually realizing the flow integration of front,middle and back stages.The key is to solve the electronic problems,such as risk management,revenue accounting and bordereaux,thus endowing the system with such features as good compatibility,expansibility,high efficiency,reliability and advancement,as well as providing standardization interface.