Chinese Commercial Banks' Operation Risk Measurement And Management--A Hint From Basel Ⅱ

In the late 20th century, the disruption of Bahrain Bank has astonished the world.Corresponding with this event, bankers and governors' attention has been greatlyaltered from focusing on credit risk and market risk to the operation risk. This eventhas also given the international banking institutions the message that the operationrisk is becoming the biggest threat of the whole banking system. From then on, theoperation risk, which is the oldest and also the strangest area, has been recognized bymore and more people. In spite of the importance of the operation risk in the bankingrisk management, there is still not enough academic research on it. This paper tries tomake a clear description of it in a comprehensive way.