The Study Of Operational Risk Measurement Of Our Banking Under The Framework Of New Basel Capital Accord

As a completely new capital framework, one of the greatest innovations to the New Basel Capital Accord is to bring the operational risk into the risk management framework for minimum capital supervision. Loss in operational risk incident happened frequently in our country, operational risk increasingly becomes the main risk facing by banks. But many questions about operational risk management all restrict the improvement of operational risk management levels of our country, the most severity of which is quantitative management of operational risk. Under the background it has weighty operation significance to study operational risk measurement of our banking below the framework of New Basel Capital Accord.Firstly, this paper expounds a complete measurement framework of operational risk management that includes connotative definition, measure methods and inside management mechanism of measurement, and points out necessity of strengthening measurement of operational risk. Secondly, it summarizes development and gradual progress about operational risk measurement. Analyzes and compares two main categories at present: bottom-up and top-down, and Loss Distribution Approach of top-down and Income Model of bottom-up is studied deeply, then finds out the main challenges of operational risk measure methods. Thirdly, taking examples for Shanghai Pudong Development Bank and Shenzhen Development Bank, it demonstrates operational risk measurement of our banking using Basic Indicator Approach and Income Model of bottom-up. And by comparing its effects with analysis result of concrete loss incidents of operational risk, it is approved that to apply operational risk measurement to our banking is feasibility. Finally, the paper analyzes difficulties to measure operational risk, such as weak consciousness of measuring operational risk, short of effective modern measuring model, behindhand of loss data collection and lack of perfect inside management mechanism of measurement, and then gives some advices.Banking is a risky industry, so its core competitive ability is the risk evaluation and management. Through directly learning advanced experience from the New Basel Capital Accord and finding out advanced risk management idea and technology, our banking can promote to change operational risk management idea, strengthen operational risk measurement sense, structure and complete our operational management system, and develop operational risk measurement model suited to ourbanking, which is help to save times and resources and realize the leaping development of operational risk management.