Commercial Bank Financial Risk Management

On condition of market economic, facing risk is common phenomenon on commercial bank operation. So, risk management become an important part of commercial bank operation. Commercial bank is a special enterprise because all its activities classify as financial asset and financial liability. We are sure that all the activities of commercial bank arc financial activities. In fact, commercial bank management is financial management and commercial bank risk management is a part of financial management.Financial risks occur on the process of capital movement (financial activity). We classify financial risk according to international convention. They are capital risk, asset quality risk, liquidity risk, interest-rate&exchang-rate risk and risk about off-balance sheet activity. We adopt managing method to each financial risk differentially.In this thesis, we survey commercial bank activity on financial angle of view and study commercial bank financial risk management in financial theory and in risk management theory. We conclude from our research that risk management is the core of financial management in commercial bank.