On Issues Of Operational Risk Management In CCB

Operational risks are caused by faultiness or failure of internal procedure, personnel, system or exterior affair. It's an important and lively topic in commercial banking practice. The wholly concern towards the operational risks by the international banking industry is no more than ten years. Series of events caused by operational risks put financial institutions in hot water since the middle 90's of last century and attract the attention of the international financial industry. The BIS listed operational risks as one among the three risks of banks in its《International Convergence of Capital Measurement and Capital Standard: A Revisal of Framework》issued on June 26, 2004 and firstly put operational risks into the calculation and supervisory frame work of venture capital, which consequently bring along the abroad study and discussion of operation risk among the international financial industry.《Notice of Reinforce Work on Keep Away Operation Risk》issued by the Supervision and Administration Council of China Banking Industry on March 27, 2005,indicated a new stage of operation risk administration in our country's commercial banking industry.Currently, a new round innovation is starting up among four state-owned commercial banks in succession. The China Construction Bank's success of listing into Hong Kong stock market of on Oct 27, 2005, predicated that she will face more strict, penetratingly, comprehensive, transparent supervise from security supervision, banking supervision, investors, share-holders, the press, clients and the public and need more rigorous internal management. Although the poor knowledge of operational risks and the lower level of relevant management in the country, the China Construction Bank should learn how to draw in international advanced technology of operationsl risk management, set up consummate operational risk management frame work as soon as possible, enhance the construction of internal control from all-sides and improve the ability to identify and control operational risks. The study of operational risks will strengthen the CCB's ability to withstand risks and be more competitive, thus to accelerate constantly and healthy development of business.The article sets up from the basic meaning, character, classification of operational risks and the basic requirement of domestic supervision towards operational risk management, compare and analyze the status of the management, investigate the loss affairs, discover the gap and shortage of CCB's management concepts, operation mechanism and technology means, thus to set forth the importance and essential of operational risk management. The writer suggests to establish effective control, circulate and transmit mechanism towards operational risks. That is: make clear policy, establish corporation management frame work that clearly divide the work and diverse one another, cultivate risk management culture of every member, press the construction of risk management system, expedite evaluation of the operation risk identify, strengthen the responsibility and invigorating mechanism.