Evaluation & Empirical Research On Operational Risk Of Commercial Bank In China

In recent years , in the financial globalization and under the financial liberalization's development background , more and more sophisticated financial technology trigger a variety of operational risk,so the international financial community began to re-examine operational risk. In'the New Basel Capital Accord'published in 2004 operational risk has been identified in the risk management of commercial banks in an important position. But there are still no general techniques accepted by scholars and banking management. Because the studey on operational risk is late in our country and the management level is lagged, operational risk incidents happen frequently in our country. Operational risk increasingly becomes the main risk faced by banks in China. So how to improve operational risk management level and prevent operational risk on the basis of improving operational risk measurement techniques is the urgent task of our banking. Under the background it has weighty significance to study operational risk measurement of our banking.Firstly,the paper introduces the definition,classification and influencing factors of operational risk.the paper compared these definitions and summarized that the New Basel Committee Accord is the best of them,which the operational risk is the risk of direct or indirect loss resulting from inadequate or failed internal processes,people and systems or from external events. According to the concrete manifestation the paper points out management deficiencies of operational risk in China. Second, the article analyzes the above factors, complexing human factors, internal processes, systems defects, external events and the bank financial situation five factors, use Graham - Gold Nephi to establish operational risk assessment index system. After analyzing problems of operational risk measurement model at present, we establish a fuzzy comprehensive evaluation model,and select the Huaxia Bank and China Merchants Bank as study objects to do empirical research. We use the information entropy and value entropy in the process of fuzzy comprehensive evaluation,where information entropy is used to determine the weight and value entropy is a new risk measure method, which is used to further differentiate the size of operational risk when the banks have the same rating scale, so we can improve the effectiveness of operational risk measurement. In order to test the feasibility of the model, the paper use the revenue model to research operational risk and get regression analysis results. According to the comparing results,verify the validity of the model.