Study On Operational Risk Insurance Of Our Country's Commercial Banks

Operational risk is one of the most important risks that commercial banks have to face, it came with the emergence of commercial banks. In some case, it may bring catastrophe to commercial banks because of its character. Controlling and transferring the risk by some effective means is related to the security of the bank system and our society. Insurance is a kind of financial-risk managing tool, it has played an important role in compensating loss in disasters and accidents, and ensured the running of our country's economy normally and orderly. This article integrated the insurance into the management mechanism of the operational risk. Guarding against the risk through the risk aversion and the loss apportionment, we can improve the operational risk managing system. This is also the purpose of our researching in this paper. The content and structure of this paper is listed as follow:Chapter 1 is the outline of this paper. It introduces the background and significance of operational risk researching. At the same time, the world-popular researching methodology and results of operational risk are summarized.In chapter 2, we introduce basic theories of the operational risk and operational risk insurance, including explicit content and classification of operation risk. And then we analyze the importance of insurance in the operation of the risk management, using the language of economics. It is the preparation for further analysis of operational risk insurance. In chapter 3, we collect the data about operational risk of our country, and emphasize the necessity and important complementary role of insurance in the operational risk management, combining theories of operational risk and mechanism of demand and supply.In chapter 4, we set focus on quantitative researching on the subject of insurance—operational risk. Because our banks haven't collected plenty of loss data and measure technology is still in the exploratory stage, we have to develop special methods that accords with our country'particularity. So we use Bayes model for reference to measure the frequency and extent of potential loss; and then we make use of the data collected to carry on the real diagnosis analysis for the purpose of verifying the method that we just introduced. countries'bank industry. From this point, we put forward methods to develop our countries'operational risk insurance, comprehensively using the theories of bank, insurance and actuary.