A Study On BCC Bank Operational Risk Management

Operational risk is one of the three major risks faced by commercial banks.Operational risks occur mostly in the business operations process and are mainly caused by the behavior of internal business personnel.Operational risks are ubiquitous but inevitable.Therefore,the operational risk is identified,the operational risk is estimated and evaluated,and the operational risk response strategy is proposed to improve the effectiveness of operational risk management,which is of great significance for commercial banks to achieve their operational objectives.This research takes BCC Bank as the research object.Through the study of the domestic and international operational risk related literatures,it first expounds the research background and research significance of operational risk management,and introduces the research status of domestic and foreign institutions and scholars on the operational risk management of commercial banks.Then the concepts and theories related to operational risk management are elaborated.The research elaborates the current situation of BCC bank risk management from three aspects: BCC bank operation risk management process,operational risk management organization structure,operational risk internal control system construction(decentralized business manager system,centralized authorization system and post-supervisor system).The internal and external inspection feedback identifies the operational risk.Combined with the case analysis method,the BCC banking operational risk causes mainly the process level(process design defects,process execution irregularity),personnel level(system implementation is not in place,internal fraud,customer complaints and Insufficient staff or insufficient training,etc.,system level(failure of money counters,discriminators,etc.,failure of online banking SMS system),external event level(business suspension caused by objective factors,telecom fraud,etc.).The research evaluates various operational risks through risk inspection and expert assessment,and clarifies the types of main operational risks and the degree of impact faced by BCC banks,and accordingly forms a BCC bank operational riskresponse strategy.The first is risk control.The first is to create a healthy operational risk management culture,and to recognize the awareness of operational risk management as a strategic task.All members build a learning organization that incorporates compliance operations into their daily code of conduct.Early detection and early disposal of risk events,and timely communication between the upper and lower levels to enhance the advanced nature and effectiveness of BCC bank operational risk management.The second is to formulate an internal control system that is mutually restrained,to prevent the phenomenon of business operations authorization in practice,to improve the independence of internal audit,to improve the efficiency of internal self-examination and self-correction,and to prevent precautions against the operational risks of BCC banks.Dynamic management mode of control,post-supervision and correction.The third is to improve the organizational structure of the internal management functions and improve the operational risk management committee independent of the board of directors to improve the independence of the BCC Bank Operational Risk Management Committee.The fourth is to improve operational risk management and supervision and evaluation.The rewards and punishments clearly directly cause employees to pay attention to operational risk control.Secondly,risk mitigation measures,the first is business process optimization to compensate for the operational risks caused by process design flaws and reduce the phenomenon of process irregularities,to prevent operational risks from the operational operational norms.The second is to provide technical support,continuous maintenance and upgrade of system batches,timely repair and recovery services in case of failures,and new services such as smart counters need to keep pace with the times and continuously explore and provide more intelligent and efficient technical support services.Finally,it is to formulate an emergency plan for operational risk.After the interruption event,it can be relied upon,report,analyze,decide,process and resume normal business operations in a timely manner,strengthen business continuity,and minimize the operational risk impact caused by the interruption event.