Research On Risk Management Improvement Of International Business Of China CITIC Bank Lanzhou Branch

Different from ordinary enterprises,commercial banks are special enterprises that engage in risks.Banks make profits on the basis of corresponding risks,In the earlier profit model of the bank,interest spreads between deposits and loans were linked to such risk: deposit funds must be paid due,yet loan funds may not be recovered.Therefore,from this point of view,the bank itself is a risk machine.It reprocesses the risks in business and management after they are transformed and merged into its financial products and services.Risk management is not only the foundation of bank management but also the basis of its very existence.International business is a type of business coming in the way when commercial banks conform to the trend of economic globalization and trade liberalization to cope with the increasingly fierce financial competition needs.Depending on the content of the business,international business can be divided into three categories: international settlement,international credit and investment,and foreign exchange transaction business.In recent years,China has actively implemented the strategy of ‘Going Out' strategy and the strategy of ‘One Belt and One Road',bringing unprecedented opportunities for the development of international business for commercial banks.However,the increasingly fierce competition in the financial sector and tightened banking supervision have also put forward higher requirements to the international business risk management of commercial banks.My employer,China CITIC Bank Co.,Ltd.Lanzhou Branch(hereinafter referred to as‘China CITIC Bank Lanzhou Branch',‘Lanzhou Branch' or ‘this bank')which established in 2009,is directly subordinate to the head office,China CITIC Bank Co.,Ltd(hereinafter referred to as‘China CITIC Bank').Since the establishment of the branch,the international business has continuously improved with respect to business scale,product range,business system and customer service,and has gained some brand effect during development.However,as business continued to expand,many kinds of business risks constantly exposed,including that settlement was conducted in violation of the rules of foreign exchange administration,due diligence was not sufficient,advance payment occurred for letter of credit customers,the funds from the sale payment under export credit insurance financing had been embezzled and there had been splitting of foreign exchange settlement.These risky events seriously restricted the orderly development of the international business of China CITIC Bank Lanzhou Branch.How to identify and analyze all kinds of risks existed in the international business reasonably,how to improve and consummatethe existing risk management mode effectively have become very important issues that needs thorough consideration and research.The purpose of this research is to explore ways to effectively improve the risk management of international business for China CITIC Bank Lanzhou Branch.First of all,the risks that commercial banks face are reviewed.In particular,main kinds of risks that may be faced in international business are highlighted.Secondly,this paper deeply analyzes the current situation of risk management of international business of China CITIC Bank Lanzhou Branch,briefly introduces the general situation of China CITIC Bank and China CITIC Bank Lanzhou Branch,introduces the product system of international business of Lanzhou Branch,analyzes and expounds the current international business risk Management problems.Finally,this article proposes improvement suggestions to the international business risk management of China CITIC Bank Lanzhou Branch from the perspective of different risk classification.