Research On Operational Risk Management Of Commercial Bank

Until the end of last century, many of law cases in China banks have been related to operation risk. This article applies Basel New Capital Agreement to analyze the operation risk of business bank at three aspects including Bank Supervisory Committee, Head Office of business bank and branches of business bank.Firstly, from supervisory aspect, it discusses questions such as cognizance of operation risk, supervisory principle, supervisory measurement and nonstandard intendance after Bank Supervisory Committee established etc. Secondly, from HQ of bank aspect, it discusses the reason, construction, procedure and how to measure & insurance abatement of operation risk, as well as HQ has supervised branches not very well and responsible for law cases in banks frequently. Lastly, it shows an example of Bank of China Tianjin Binhai Branch to discuss how to recognize and manage the operation risk. It should summarize the point from branch banks based on classifications of various risks in different lines as almost all the risks are exist at various business lines. From this view, the essay discusses in branches of bank how to setup risk management department, how to setup construction of risk management, how to measure risk and how to distribute the capital in risk.