Research On The Management System Of Compliance Risk Of Commercial Bank

Commercial banks are the institutions which manage risk. But it also has very high risk. The outbreak of violation cases of financial institutions at home and abroad from time to time illustrates this point. The reasons of resulting in the violation operations of financial institutions and the crime of employees of banks are various. But the most reason is the missing of management system of compliance risk in bank. As early as the 1990s, a number of international banks have been recognized that a variety of outbreak of the operation risk and the scandals of money laundering result from the compliance risk management of bank out of control. To the Chinese banks, irregularities and moral hazard influence the safe operation of bank. The reason is that our banking industries do not consider the irregularities as the activity of risk management. And our banking industries also do not consider the irregularities as the source of risk. For a long time, we ignore the compliance.To solve this serious irregularities problem in the banking, the Basel Committee on Banking Supervision issued the document which named《Compliance and Compliance Departments》,and bring up 10 principles to recommend the best method which manage compliance risk in 2005. In order to response the Basel Committee on Banking Supervision, the China Banking Regulatory Commission promulgated《Management Guidelines of Commercial Bank Compliance Risk》in 2006.《Guidelines》is a core system of banking supervision about risk. It stressed the compliance of all commercial banks is the common responsibility of the staff, starting from the top, requiring commercial banks to establish risk-based compliance management concepts, and to enhance compliance and risk identification management of the construction process.So in my paper, on the basis of study and understanding deeply about these two important documents, we analyze of the experience of compliance risk management of commercial banks at home and abroad. We differentiate the relationship between the operation risk and compliance risk, legal risk and compliance risk, reputation risk and compliance risk, and all-round risk and compliance risk of. At the same time, We differentiate the relationship between the compliance departments and the of internal controls departments, compliance departments and audit departments, compliance departments and Legal Affairs departments, and compliance departments and risk management departments. On this basis, we design the commercial banks compliance risk management framework and in put forward a centralized management and line-report-based compliance management ideas and provide the line of the report. Finally, we stress the compliance culture construction and compliance institution construction. Research aim is that reduce the outbreak frequency of compliance risk of commercial banks, improve the operation performance of commercial banks, increase the value of the company, achieve the goal of maximizing shareholder wealth, and actively carry out corporate social responsibility.