On Erm In Commercial Banking Under Financial Globalization

Ever since commercial bank came into being, risk was born with it. Commercial bank realizes its earnings and development in the process of risk control and management. Theories of risk management in commercial banking are outcomes of the development of banking operations and the continuous deepening understanding of financial risk. The development of financial globalization has affected deeply the commercial banks' operating environment. Hence we enter the age of Enterprise-wide Risk Management. ERM is an important content of the modern commercial banks' core competency. It requires to manage banks' risk in all-directions, during the whole process and with all main factors. With the fast and fast process of global financial integration, the risk to commercial banks is increasingly complex. Risk management not only affects the performance of commercial banks, but also decides their survival. So, study on ERM in commercial banking will be beneficial for us to adapt to the development of international banking and raise the competency of our banks in the world as well.The thesis consists of 4 chapters, and the contents of each are as follows:Chapter 1 The Impact of Financial Globalization on Risk Management in Commercial Banking. This chapter mainly discusses the change to commercial bank's operating environment and the impact on its risk caused by the development of financial globalization, and emphasizes on the analysis of the challenge and opportunity to risk management in commercial banking under the background as above.Chapter 2 Summary on ERM in Commercial Banking. This chapter looks back on the history of the theoretical development of risk management in commercial banking, and casts back to the establishment of ERM in commercial banks in western countries. Then the thesis goes on to introduce what is ERM and its connotation, and analyze the causes of some main risk in commercial banking.Chapter 3 Design on ERM in Commercial Banking. Based on Chapter 2, this chapter explores how to set up ERM in commercial banks. In this chapter we discussthe characters of ERM system first, and then go to study on the set-up of ERM in commercial banks under the ERM frame raised by COSO, with reference of the practice in western commercial banking.Chapter 4 Difficulties in Reform for Setting-up ERM in Domestic Commercial Banks and Some Proposals. Based on the former study, this chapter is mainly about the actuality of risk management in domestic commercial banks and difficulties in reform for setting-up ERM, and then raises some proposals for domestic banks to realize ERM.