The Research On Operational Risk Control Of Internet Banking In China

Internet banking provides the financial services to the customers and business by the help of Internet. Because of the convenient, quick services that Internet banking has, more and more people begin to accept this kind of new product. Operational risk of Internet banking is a common topic full of challenges. For a long period of time, financial department have paid so little attention to operational risk that there is seldom some mature techniques of operational risk management.Technical applications may lead to operational risk by all kinds of means, where risk of security is most evident because the banking system and products may be suffered by the attack everywhere. What's more, the deficiency of Internet banking system may be one of the reasons of operational risk. And the risk from the misuse of customers can not be ignored.As for the operational risk situation of the Internet banking in China, a conclusion can be drawn is that in the past years, the operational risk mainly comes from the customers' misuse, the deficiency of the banking system and the illegal behaviors of banking employees and other people. However, it is nature that with the rapid development of network technology, the percent of illegal behavior through Internet must be on the increase during a period of time, and the loss for it is surely surprising. On the contrary, less customers' misuse which is responsible for operational risk will happen.The reasons for the operational risk of Internet banking in China are complicated and diversified: at first, the present financial supervision is not appropriate for the network economy; secondly, the internal control of banking is not efficient; thirdly, the investment on the technology of Internet banking is not enough for the advanced field; fourthly, the legislation and regulation on network economy is relatively backward; at last, many customers lack of the experience of security.The strategies on controlling the operational risk of Internet banking in China includes outside control strategies and internal control strategies. Internal control includes improving the reliability and security of Internet banking by the help of technical methods, strengthening customers' ideas on security and improving the level of internal control of bank. Outside control includes adjusting the present financial supervision and developing the legislation and regulation on network economy to limit and punish some people's illegal behaviors that brings the loss to bank or customers.