The Application Of Reengineering Theory In The Risk Management Of Commercial Bank

Reengineering the bank is revolution of bank management, which rose in the 1980s in USA. Facing the intense banking competition, bankers have realized that the demoded management was out of date. Stressing too much on "separating of specialized fields""scale advantage""hierarchy"could not adopt itself to the new competition environment. Thus, "reengineering the bank"emerges at the requirement of the times. It advocates giving up the demoded separating of specialized fields and designing the workflow of bank fundamentally to scientifically "keep fit"and gain continuous advantages on competition. Facing foreign banks'aggressive competition situation, China has injected USD45 billion of foreign exchange reserve to CCB and BOC as capital to strive to set up internationally competitive modern commercial banks. Moreover, domestic banks have also used the successful experiences of international developed banks for reference to strengthen the competitive power of domestic banks by implementing reengineering to achieve the transform of operating mechanism. By studying the development of domestic banks, this thesis has summarized the successful experiences and thoughts during past reform, analyzed the competition environment and developing chances that domestic banks are facing, pointed out that reengineering is an inevitable choice of the development history and reality of domestic banks. This thesis is focus on the practice of bank reengineering, especially on the branch of risk management of commercial bank. It contents those aspects: 1,By analysis the value chain of commercial bank, the author find out the most important meanwhile the weak point of workflow. And drawn the conclusion that the risk management is the core of all question. 2, Used SWOT method, author believed that the highly developing financial market of china offered the chance to the international and domestic bank. It is quite different between the international and domestic bank in the risk management. The risk management style of domestic bank could not meet the requirement of competition.. 3, Divided the risk management into 3 branches. reengineering the goal of risky management, reengineering the workflow of risk management, reengineering the organization structure of risk management. In order to push commercial bank risky management to be successful, this thesis has also pointed out to creatively use necessary measures of information technology, changing of company culture and leadership.