Research On The Optimization Of Counter Operational Risk Management Of L Bank Based On Digital Transformation

As a vital component of our country’s banking system,commercial banks play an exceptionally significant role in driving our economic development.With the financial industry’s evolution,heightened government supervision,intensifying competition from internal and external sources,the compliance of commercial banking business has gained increased attention,with risk management taking on a particularly crucial role.The counter operational risk represents the primary operational risk confronting commercial banks,and due to its complexity,diversity,and potential for significant financial loss for customers and banks,it may even cause regional financial chaos.Consequently,bank managers have increasingly prioritized counter operational risk management,which is pivotal to the bank’s future.Taking L Bank as an example,I conduct a research on the counter operational risk management in commercial banks.Firstly,I use the literature review method to describe the research on operational risk.I find that operational risks are mainly endogenous risks,and internal control is the only way for operational risk management.The theoretical framework is then constructed based on risk management theory and internal control theory.Secondly,I analyze the current status of L Bank’s counter operational risk management,identifying certain problems in the counter operational risk management due to high-risk business errors and frequent operational risk events.Through the expert scoring method combined with interview surveys,I find that problems in human resources,processes,organization,information and systems are the primary causes of operational risk in L Bank,which are caused by defects in internal control.Later,a questionnaire survey is conducted,combined with reliability analysis and correlation analysis,to clarify a strong negative correlation between the five elements of internal control in L Bank and the counter operational risk.Effective internal control leads to less occurrence of counter operational risk.However,defects are found in the five elements of internal control,and these are analyzed in detail through interviews.The causes of risk management problems are also explored from the perspective of internal control.Finally,after analyzing the sources of counter operational risk through the HHM model combined with digital transformation,I propose an optimized scheme for the counter operational risk management system.The operating effect of the system is also analyzed.Through my analysis,it has become apparent that L Bank’s management mode is relatively traditional,which limits its ability to identify,evaluate,and respond to counter operational risks.Additionally,the bank’s system and process management is lax,and inspections and corrective actions are not adequately carried out.The level of digitalization is also low,with outdated system functions.The bank’s management of counter operational risk heavily relies on manual operations and experienced judgment,which is not suitable for current business practices.To address these issues,I suggest implementing a counter operational risk management system to optimize management and achieve standardized,intelligent counter operational risk management through digital means.This will help L Bank reduce the frequency and loss associated with counter operational risk,complete its risk management system,and improve the overall risk management level of the bank.My research has uncovered potential deficiencies in commercial banks’ counter operational risk management and offers valuable recommendations for similar institutions to enhance their counter operational risk management practices.I hope that my research will raise awareness of the importance of counter operational risk management in commercial banks.