Research And Empirical Analysis On Operational Risk Control Of Domestic Commercial Banks Accounting Operation

Since China's accession to the World Trade Organization (WTO), domestic commercial banks are facing increasing competitive pressures and challenges. In responding to these challenges, commercial banks are trying to expand business scale, to introduce new products and services, and thus, they are facing more and more operational risk pressure. Particularly at the accounting operation management area, as a result of restrictions at personnel systems, business processes and technologies, significant operational risk loss events to occur repeatedly, has brought the massive loss for commercial banks. Basel Committee on Banking Supervision in its "New Basel Capital Accord"(Basel II, June 2004), require commercial banks to cover the operational risk and a proportion of capital must be set for the purpose of its prevention. The China Banking Regulatory Commission published a notification (2005) on strengthening the work of prevention of operational risk, in which the committee explicitly put forward the concept of operational risk. Actual cases are used in this paper to analyze the deep-seated causes of the commercial bank's operational risk from the perspective of accounting operation. It is a positive reference on domestic commercial banks, particularly on main branch of joint-stock commercial banks for their accounting operation management and operational risk control.The paper is based on the regulations in Basel II, learned from the advanced experience of international mainstream commercial banks, analyze the domestic commercial banks accounting operation management to find out the main form and factors of accounting operational risks. The conclusion is that people, process and control mechanisms operating are the three main causes and risk control points.Risk control theory, the theory of matrix organization structure, process reengineering, and PDCA theory are utilized in this paper to find the solution of accounting operational risk control. And organizational restructuring, process reengineering, monitoring mechanism and comprehensive risk control establishing are proposed for domestic commercial banks.In order to apply theory in practice, an empirical analysis of Shanghai Pudong Development Bank Jinan Branch is given in this paper. SWOT analysis is used to identify the strengths and weaknesses of its accounting operation management, and proposed countermeasures are given for SPDB Jinan Branch.