Research On Optimizing The Credit Risk Management System Of A Commercial Bank

Credit risk is one of the most important risks faced by commercial banks.Faced with the triple pressures of demand contraction,supply shock,and weakened expectations,commercial banks’ risks have become more diversified and difficult to control.The essence of bank operation is operational risk,so the level of risk management is closely related to the operational development status of commercial banks.According to the research of the World Bank,credit risk is one of the main reasons leading to bank bankruptcy,and the internal rating based approach is an important part of the New Basel Capital Accord,which is representative in the technology and development trend of modern credit risk management,especially the estimation of probability of default and loss given default.The methods proposed in the New Basel Capital Accord have important guiding significance for commercial banks to improve their credit rating levels,It has been widely recognized by the global banking community.At present,domestic commercial banks have established risk management models and systems for credit risk management in order to strengthen credit management and prevent credit risks,and regard them as a fundamental work and important means.This article starts with the theoretical foundations of risk management models,internal rating method content and application trends,and internal control in Chinese commercial banks.Through theoretical analysis,investigation,and research methods,combined with the current situation of credit risk management in A commercial bank,this article analyzes the problems and causes of the credit risk management system of A commercial bank in the form of typical cases,and then proposes targeted suggestions for optimizing the credit risk system,Provide effective decision-making for the control and management of subsequent credit risks.This article mainly uses case analysis to select four representative enterprises,Company A,Company B,Company C,and Company D,to reflect the problems in the credit risk management system of Commercial Bank A,such as defects in internal control systems and risk loopholes;Incomplete internal rating system and untimely credit rating;Lack of effective post loan management and supervision mechanisms;Propose some suggestions to address issues such as inadequate training systems for risk management personnel.Based on analysis,A Commercial Bank needs to improve its internal control system,internal rating system,comprehensive risk management system,professional risk management team training system,risk management preferences,and unified customer credit requirements in optimizing its credit risk management system.