Risk Precaution Of Derivative Products Of Chinese Commercial Bank

The development of financial derivative products is commencing in the commercial banks in China. The systemic research of the risk management of these products is still deficiency. The development of the derivative products and their risk management are definitely important for the bank's competence .In this essay, the gap of derivative product' s risk management between Chinese commercial bank and international advanced bank is analyzed. We try to link the international advanced theory and method of risk management to the practical problems in Chinese commercial bank. The essay expatiate the implemental route and practical method to achieve the systematic management of financial derivative products in two important aspects: the banks interior risk prevention and the exterior supervision.Base on the international advanced risk management and the requirement of new Basel capital accord , there are three aspects in interior risk prevention discussed in the essay: the organization reform , selection of risk measurement models, interior control method for five types of risk.The essay analyzes the practical problems in the exterior supervision system of Chinese commercial bank' s derivative products. Focused on improving exterior environment and strengthening supervision, the essay investigates the government supervision, bourse management and international collaboration. Some recommendations are presented.