Research On China's Commercial Bank's Operational Risk

In recent years, some big loss events forced the banking supervision authorizations to be aware that some risks other than market and credit risk can be substantial .operational risk was introduced to the risk management realm as a new risk catalogue under this situation.The New Basel Capital Accord brings the Operational risk into the risk management framework for minimum capital supervision. Loss in operational risk incident happened frequently in our Country, operational risk increasingly becomes the main risk facing by banks. But the study of operational risk in our Country on elementary phase, As a result, the research on operational risk has its special importance in China.Firstly, this paper gives a connotative definition of operational risk, and hypothesis of the cause of operational risk. Describe commercial bank status in quo China though data. Analysis the cause of China's commercial bank's operational risk. Taking examples for Shanghai Pudong Development Bank and Shenzhen Development Bank, it demonstrates operational risk measurement of our banking using Income Model of bottom-up. Using the two bank's annual data and other economic index approved that to apply operational risk measurement to our banking is feasibility. The last part of this paper study The New Basel Capital Accord's operational risk management framework's apocalypse to China's banking. Under this basis combine the analysis of the cause of China's commercial bank's operational risk bring forward how to control China's commercial bank's operational risk.Banking is a vocation full of risk and challenge ,China's bank can survive only by enhance the competition ability though study of The New Basel Capital Accord ,use for reference the method of measure and control of operational risk.