The Study Of Chinese Commercial Bank's Operational Risk On Fuzzy Synthetic Evaluation

To avoid risks is an important task the banks are facing. Besides credit risk and market risk, the operational risk is one of the most important risks that could even cause bankrupt. So the study and attention paid on the operational risk is well necessary.There are much difference between the operational risk and the credit or market risks. For example, most of the operational risks do not happen in high frequency, but the lost caused was very high. The measurement of the operational risk was thought to be impossible in the past. Most of the management of the operational risk was based on the operational handbook or risk detailed list. At present, with the operation automatist development, the condition of operational risk quantification as well as modelling external is also mature. The domestic and foreign scholars all have some research on the operational risk, the overseas research is mature, the results concentrate in the operational risk supervising and managing as well as operational risk measurement and operational risk management and practical application.This paper has carried on the outline of the operational risk first. It introduced the definition of the New Basel Committee Accord, various commercial banks and each development facility. 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. Then the paper classified the operational risk. The paper elaborated the measure method proposed by the New Basel Committee Accord, including primary measurement method and high-level measurement method. The paper analyzed the risk characteristic of the operation risks. And, it proposed the index for evaluating the operational risk. Also, it elaborated the difficulties measuring the operational risk model which implements under our country's market condition, then it gave the modelling condition, the process and the method. The paper plans to use the fuzzy quality synthetic evaluation method to establish model. The model can score refinement and can be found on the overall weak link, so as to provide direction of improvement for the managers. The AHP and the Delphi law utilized in the fuzzy synthetic evaluation to determine the ratio and grading separately. The paper proposed the diagnosis analysis regarding modelling is feasible. It selected two commercial banks Industry and Commercial Bank of China and Shanghai Pudong Development Bank to carry on the diagnosis analysis through the introduction of modelling method and drew the conclusions and proposes the suggestion.