The Study On Operation Risk Of Commercial Bank In China

This paper looks the concept of operation risk published by the Basle committee as the standard and researches primarily the factors which result in operation risk from theory. At the same time, we combine the theory and the fact of commercial bank in China to analyze the reasons which result in operation risk, the kinds of operation risk and the characteristic of operation risk and use the statistic tools to study the data of operation risk related to commercial banks in China. According to our analysis, we find that the operation risk of commercial banks in China has the explicit "China Characteristic", and the "Internal Fraud" is the rr.ain part of the all operation risk of commercial banks in China, Maybe which is resulted because a series of institutions arrangement, such as the corporation governan;e, internal control, operation and management etc. What's more, as the business unit becoming more and more complicated, the probability and loss of operation risk is cline to up, this is accordance with the fact of international banking. This paper also introduces some advanced management tools of operation risk and its role :o Chinese banking. In the end, our statistics result is same to the empirical study resul: by international banking, which is a finding of this paper.