The Risk Management Of Banks The Risk Management Of Banks

Problems in risk management came forth with the appearance of currency or finance merchandise. Quality of Rank asset reduced sharply as banks cut prices for their own achievements, which result in more menace in bank management. Then it is important to control and manage the bank risk. What risks exist in bank management besides the credit risk and market risk? How to manage them? What is the tactics? The paper aims to find the way that banks deal with business risk in management. With the application of value at risk and the challenges of the New Basel Capital Accord, there is no time to delay for banks to institute an efficient risk management system.The implementing process of risk management in banks is discussed before comparing the practice with the expectation of risk management. The resistance and assistance in the practice is studied and the application of risk management and value risk is researched. Then the problems and challenges in practicing the Basel â…¡ Accord in banks are explained and how the banks adjust their organization structure to be an efficient risk management system correspondingly by demonstration study. At the end of the paper several organization-adjusted banks are traced with the affiliation of paper achievement and theory. And the results are released as will be useful for other banks in risk management.Their creative jobs have been done in the research. One is institute special department to management and control bank risk strictly. Another is the application of interactive decision to make the police implemented efficiently. And the last one is to set up Asset Liability Control Organization, ALCO, to administer the entire bank asset. The dissertation shows that the capacity of risk management in current Taiwan banks is inferior to those in occident though the idea of risk management is coming is formed gradually. Risks mentioned in the discourse such as disaster risk were less studied before. The paper reminds that banks should not confine to finance risks and operation risks in risk management.The purpose of risk management is to control risks instead of eliminating them. Banks should select the risks capable to control to manage meanwhile reduce the risks lack of management ability.