On Investment Risk Management Of Commercial Bank

With the reform of China's banking system since 1984, the organization and operation system of China commercial banking has been established, and competitions have been booming all the places in our country. However, a trail of bankruptcies like Hainan Development Bank exposes lower levels of the management and operation in whole banking. When China banking will fully open to world in 2006, how to analyze risk, how to find the origin of the risk and how to manage risk to increase the return and decrease the loss, have become urgent tasks. The thesis is founded on these backgrounds above.Firstly, the first chapter gives risk a definition, analyses the nature and characters of the commercial bank investment risks and puts forward the basic analytic framework of bank investment risk for the whole paper. Secondly, the second part of the paper puts forward the view of realizing the potential risks by three angles: the pricing of investment tools, fuzzy comprehension evaluation of investment object and the consistence between the trend of bond prices, net value of corporation and national economy, and then goes on analyzing and testing. Totally, risks were found from these sides.At last, the paper puts forward one investment portfolio management model to reduce the loss based on measure risk of single investment. Meanwhile, the paper analyses and diagnoses risk causes put forward the strategies and measures to prevent the loss and improve risk management.