Research On On-the-counter Business Operation Risk Management In A Bank Jiangsu Provincial Branch

Since entering 21~stt century,China's financial industry has started rapid development era.However,with the continuous expansion of business and the rapid renovation of financial products,the old risk management concepts and methods can no longer meet the needs of business development,more and more cases of risk loss are gradually exposed.In recent years,data exposed by internal and external fraud and error loss has shown that on-the-counter business operation risks has become one of main risks that China's banking industry faces.How to effectively control the operation risk of on-the-counter business and reduce the cost of operation risk management have become a common problem concerned by various commercial banks,relevant regulatory departments and the academic circles.In this paper,A Bank Jiangsu Provincial Branch is taken as research object to firstly understand current situation of on-the-counter business operation risk management,starting from two aspects of business process and risk management system.Major problems existing in these 2 aspects in A Bank Jiangsu Provincial Branch are deeply analyzed by using the way of combining theoretical research,practical investigation and application and adopting methods of qualitative analysis,case analysis.In the business process,there are many problems,such as the disunity of operation standards,nonconformity of process caused by no interaction among various departments,lack of advanced means in risk control,inadequate application in scientific means of information technology etc.In management system,problems mainly exist in inadequate compliance culture atmosphere,imperfectly adequate system construction,imperfectly reasonable performance evaluation mechanism,failure on paying attention to the role of human factors in operation risk management and so on.On the basic of analyzing these problems that influence operation risk management,this paper proposes optimization plan from business process and risk management system.In process optimization,it is suggested to improve from on-the-counter operation process,approval process,system optimization and other aspects.In management system,it can be carried out from training compliance culture,improving risk management system,optimizing risk identification and control,improving employee behavior management and comprehensive evaluation and assessment system etc.After the optimization plan is put forward,we need to guarantee from the aspects of system,organization,human resources and information technology in the specific implementation process.In summary,specific ways to control operation risk of on-the-counter business are proposed in this paper via analyzing and concluding classification and characteristics of on-the-counter business operation in financial institutions of China's banking industry,selecting the most typical bank,A Bank Jiangsu Provincial Branch as evaluation sample and finding out disadvantages and shortcomings existing in the bank.It provides a broad field for academic circles to study the theory of risk management in financial industry and provides practical reference for commercial banks to control operation risk.