Research On The Optimization Of Operational Risk Management Of M Bank

With the deepening of China’s economic globalization and the promotion of interest rate liberalization reform,the competition between banks is intensifying,and the customer demand for financial markets and financial services is also increasing.In order to improve their competitiveness,banks tend to diversify their business and products,the operational risks which banks are facing also increase as their business scale expands,Operational risks are increasingly threatening the healthy development of banks,causing huge losses,they also bring great negative impact on banks’ reputation.At the same time,the situation of financial regulation is becoming increasingly strict.According to statistics,compared with 2019,the number of penalties imposed by the China Banking and Insurance Regulatory Administration on those responsible increased by about 30% in 2020;The ratio of persons responsible for punishment to institutions showed an increasing trend compared with previous years.This shows that not only are the institutions in question being punished more severely,but those directly responsible are also being punished more severely.According to the China Banking and Insurance Regulatory Commission Report on Administrative Punishment in 2020,it is found that the regulatory situation facing M Bank is very severe.Data show that in 2022 alone,M Bank was punished 15 times by China Banking and Insurance Regulatory Bureau,with a total amount of 14.254 million yuan,which has an obvious upward trend compared with previous years.Violations main consist of personal customer information protection,loan business service,account management.The problems in the protection of individual customer information are lack of approval procedures for consumer information;the problems of loan business service lie in the whole life cycle,including pre-loan investigation is not dutiful,illegal undertaking off-balance sheet risk assets when the loan is issued,lake of post-loan inspection and management;the problems in the account management focus on opening and concealing accounts not filed in the People’s Bank of China System in time,the opening and application of special accounts does not comply with the regulations.The punishment focuses on loan business and internal control management,which also reflects that there are still many problems in operational risk management of M bank,the effectiveness of various control measures is insufficient,and the management situation needs to be improved.Based on the theory of information asymmetry,internal control,psychological contract and comprehensive risk management,M Bank as the research object,this paper is dedicated to discuss the operational risk management problems and optimization measures.First,This article studies and analyzes the organizational structure of M bank and the main operational risk management process.Second,combined with monitoring analysis of the key risk indicators,employee interviews and analysis of typical cases,it is found that M bank has been exposed to weak risk awareness in the operational risk management,which includes: weak risk awareness among employees,insufficient electronic management function,backward system management process,insufficient effectiveness of implementation,and loopholes in internal control.Finally,this paper proposes optimization measures for the operational risk management of M Bank: First of all,we should strengthen internal control and cultivate a culture of risk management with full participation;secondly,electronic management mean should be enriched to improve the level of system operational risk prevention;in addition,the forward-looking and achievement application of the three tools of operational risk management should be improved;last but not least,the system construction should be improved and the system implementation should be strengthened.