Research On Operational Risk Management Of Rural Household Small Loans In M ??Rural Commercial Bank

At present,China's macroeconomic development has entered a new normal.Traditional financial institutions are facing the grim situation of intensified competition,slowing growth,increasing pressure from business and risk control,increasing financial disintermediation,and strict supervision.Rural financial markets are experiencing unprecedented challenges.Rural Commercial Bank adheres to the market orientation of"oriented to agriculture,rural areas and farmers,oriented to the community,oriented to small and medium-sized and micro-enterprises,and oriented to the county economy".Its main customers are farmers,which determines that the loan amount is small,most of the financial object of the loan is not perfect,the impact of asymmetric information is serious,the risk is large and so on.Strengthening risk management has become the most important aspect of the management of Rural Commercial Bank.Based on this,this paper takes M-bank as an example to study the management of microfinance operation risks of farmers in Rural Commercial Bank,which inevitably has important theoretical and practical significance.This article uses the literature review method,case analysis method,investigation and research method.On the basis of reviewing the current research situation both at home and abroad,this paper focuses on the operational risk management of small-scale rural households.The main contents of this paper are:(1)To define the concept of peasant household microfinance operational risk management,combing the relevant provisions of operational risk management by authorities such as Basel Committee,COSO,PBOC and CBRC,and to confirm the contents of the research on operational risk management.(2)Analyze the culture and management structure of M-Bank's operational risk management,focusing on the four types of operational risks and management of M-Bank,including personnel and management,process and management,information system and management,external events and management,and a brief analysis of the internal control.(3)This paper analyzes the operational risk management culture,management framework,four types of operational risks(personnel,processes,systems,and external events),internal control issues and causes.The main problems found are lack of operational risk management system,the operational risk management architecture is in the form of the low level of operational risk management of the four types of operations(frequently occurring personnel risk events,defects in business processes,relatively backward information systems,and the ability to handle external events is not strong),and the internal control effect is poor.The reasons for these problems are mainly due to insufficient attention to the risk of loan operations.Operational risk management framework has unreasonable settings.Staff quality can not keep up with business development needs.Lack of effective internal control mechanisms.(4)Measures for improvement:To improve the operational risk management awareness,optimize the operational risk management structure,improve the management of four types of specific operational risk,strengthen internal control and staff training,establish an effective incentive and disciplinary mechanism,so as to improve operational risk management of peasant household loans and promote the healthy and sustainable development of M Rural Commercial Bank.The innovation of this article is that,(1)rural commercial banks,as small and medium-sized financial institutions,most of them have just restructured from rural credit cooperatives,and there is a certain gap between large-scale commercial banks,from the county-level legal person model to specific operational management.It does not specifically penetrate into its management culture.There are few researches on the operational risks of rural commercial banks.(2)there are many analysis of credit risk of farmers' loans,and the specific research on small agricultural loans has less operational risks.This paper applies the related theory of operational risk to the research of rural commercial bank households on micro-credit,which can enrich the risk management theory of small-scale agricultural credit institutions and make the research direction of operational risks more detailed.