Case Study On Operational Risk Prevention And Control Of W Branch Of Postal Savings Bank Of China

In recent years,China’s financial industry is in chaos,especially the bank operational risk incident is constantly detonated,which has aroused the attention of China’s financial regulatory authorities to the banking operational risk and its internal control.Operational risk is difficult to be completely eliminated because of its intrinsic and extensive characteristics,and China’s commercial banks,as the dominant financial institutions in the financial industry,will inevitably suffer from the damage caused by operational risk.With the continuous expansion of the scale of China’s commercial banks,more and more kinds of business,and the loss caused by operational risk detonating is also increasing.The China Banking Regulatory Commission(CBRC)issued the List of Corporate Persons of Banking Financial Institutions in February 2019,The Postal Savings Bank has since become the sixth major state-owned commercial bank in the world,with the exception of five big banks,in the category of institutions that put the Postal Savings Bank into the ranks of large state-owned commercial banks.The Postal Savings Bank has many hidden dangers in business development and internal risk prevention and control,because of its special historical background and its different business model from the other five state-owned banks.In the past two years,the Postal Savings Bank has been involved in the case of Guangfa Banks Overseas Debt Promotion Case and Postal Savings Bank 7.9 billion Bill Violation Case,which originated from the collusion of commercial banks with other banks in operational risk cases,The Postal Savings Bank has exposed many loopholes in risk prevention and control and has been severely punished by the China Banking Regulatory Commission.At present,the most widely accepted regulatory standard for operational risk of commercial banks in the world is based on a series of Basel Accord issued by the Basel Committee,and some of the regulatory documents of commercial banks in China are also based on its standards.The final version of BaselⅢ,which was released at the end of 2017,also provides the most up-to-date recommendations and standards for commercial banks to optimize operational risk management.This paper mainly expounds the evolution of Basel Accord,the most authoritative theory on operational risk of commercial banks in the world,and then analyzes the measurement and management of operational risk in commercial banks.Then through the Postal Savings Bank W branch specific business operational risk case to conduct a detailed study.Firstly,it introduces the basic information about Postal Savings Bank and its W branch,and then analyzes the operational risk management of Postal Savings Bank from two aspects: risk status and management level.Then the paper sorts out the case process of the specific operational risk of W branch of Postal Savings Bank and the subsequent impact.In this paper,hierarchical holographic modeling(HHM)method is used to identify and study the operational risks in a case,Then the paper analyzes the causes of the operational risk of W branch of Postal Savings Bank from the internal and external aspects,and finally gives the corresponding solutions and suggestions to the operational risk of W branch of Postal Savings Bank from both internal and external aspects.