Research Of Branch Bank Operation Risk

The risk that Financial institutions face can be roughly summed up as market risk, credit risk and operational risk. hough the U.S. financial tsunami triggered regulatory authority to pay more attention to the market risk and credit risk , Chinese financial industry is in the early innovative financial stage and it has more practical significance to strengthen theoretical research of operational risk.The financial institution pay great attention to the market risk and credit risk long before ,so there are some ripe techniques of risk management at present .Through the defintion of the operational risk had a long history, that operational risk become one of three main risks that finacial institutions face occured in recent years. The new Basel Capital Accord regard operational risk as the focus of risk management which is included in the minimum regulatory capital requirements.Chinese banking sector is concerned about operational risk lately, and the operational risk control study just begins. Chinese bank industry have some big deficiency in research of operational risk and practice of operational risk control which become the main obstacles to study the operational risk control.Therefore,it is neccessary to thoroughly analyze the operational risk of commerical bank. The study about the operational risk of commerical bank will help the commercial banks to improve their abilities of guarding against the risk so that commercial banks can achieve target about the security of the operation and management.This article consists of four parts.The first part is the theoretical analysis of operational risk in commercial banking industry, focuses on the characteristics of the risk.The second part is a study on the precaution of operational risk in commercial banks. Analyse on the precaution and control system in Chinese commercial banking industry and points out the necessity and urgency of take precautions and control of the operational risk in Chinese commercial banking industry.The third part studies on a typical case of the operational risk of a province-level commercial bank.The fourth part put forward some way to prevent and control the operational risk.This article takes the some cases of operating risks in some provincial Commercial banks to analyze the existing problems and the primary causes of the risk controlling of the provincial Commercial banks, and carries out theorial discussion about how to guard against the Commercial bank's operating risk. This article takes the ethics flaw of the bank jobholders, unperfect of the inside control mechanism and the unbalanced system as the main causes of Commercial bank's operating risk in China. On basis of taking the mature experience and beneficial practice of the operating risk controlling of the international bank and the supervision organization, the author combines his years of experiences in banking industry, and comes up with some related strategies to guard against the Commercial bank's operating risk.from the operating aspect.The author believes that Chinese Commercial banks who want to enhance risk control should cultivate a modern commercial bank risk management culture, strengthen manager incentive and restraint mechanisms, and gradually establish mechanism for an early warning system , accelerate construction and implementation of risk management-based platforms...