The Risk Management Of Derivatives Transaction In Commercial Bank In China

The study of financial derivatives risk management is the inevitable choice to meet bank commercialization, economic marketization and globalization, and it is the only way of launching the derivatives trade business. The concept of the derivatives, initiation and development background, classification, risk characteristic and classification, the development in commercial bank of our country had been discussed. An economical analysis which uses Game Theory, EMH and Prospect theory of the production mechanism about credit risks, market risk, and operation risk of the derivatives has been given. Then analyses the reason why the risk produces from the defect angle of the organization system of the commercial bank and risk supervisory system generally. So there are five countermeasures on how to strengthen the risk management of derivatives trade in commercial bank of our country: To the credit risks , should strengthen credit and restrain system, including completing the social credit system, strengthening the relevant laws and regulations; to the market risk, should strengthen the validity of the capital market of our country, including cultivate good capital market environment, cultivate rational investor, perfect information announcing system, develop derivatives trade market; to the operational risk, should build the encourage and restriction mechanism of traders, including set up the risk culture of the bank, improve trader's qualities, set up rational incentive mechanism, strengthen the inside management of operational risk; In the organization institution of commercial bank, should set up flat managerial structure, stren gthen inside management system, build ERM; On supervisory system construction , should complete legal system, enrich the supervise system and complete organizing system.