The Research On The Operational Risk Management For Commercial Banks In China

New Basel Capital Accord, is sued by Basel Committee on June 26th, 2004,which brings operational risk into measurement framework and the capital supervising framework. In China, most Chinese commercial banks didn't pay much attention to operational risk management until the early of 2005 when many large financial scandals were reported. Their focus on credit risk management and lack of scientific operational risk management are the main reasons for those cases. So the empricial analysis of operational risk' measurement and efficient management and control operation risk is urgent task of Chinese banking. Under the background it has weighty operation significance to study operational risk measurement of Chinese banking.The main significance of the study is strengthen operational risk management on the basic of the New Basel Capital Accord, and choosing the suit operational risk measurement model for China's commercial banks. For the status, it is the first thing improving the operational risk management.Operational risk econometric model has become the main topic being studied by the bank industry. Firstly, According to the concrete manifestation the paper points out the necessity and urgency of strengthening measurement of operational risk in Chinese banking. In chapter 2 the paper expounds the connotation, the sorts and the characteristics of operational risk. In chapter 3 the paper expounds all kinds of operational risk measurement, which are The Basic Indicator Approach(BIA), The Standardized Approach (SA), Loss Distribution Approach (LDA), Extreme Value Theory (EVD), and so on, and chooses income model that is most fit for Chinese banking. In chapter 4, statistical analyzing the cases of the commercial banks in china, and putting forward memory characteristics of operational risk, and reasons which the operational risk. In chapter 5, taking example for three banks on the market, the paper measure operational risk facing the three banks. When comparing relative value of the three banks' operational risk coefficient of variation is brought in. by analyzing the comparing result linking to the managing conditions of the three banks the paper demonstrates feasibility of income model. Finally, the paper combines the usage of operational risk measurement method in chapter 6, and summarizes the experience of operational risk management from the comparison between the empirical result of three banks and actual circumstance and then gives some advices.Banking is a risk industry. The management conditions of banking directly affect the stability of financial system and the society. Operational risk is a complex domain as well as a new problem, and there are many problems to resolve. By putting the advanced operational risk measurement technique and management technique into practice, Chinese banks can from correct operational risk management ideas, strengthening operational risk measurement consciousness, exploring accurate measurement model that is most fit for Chinese banking, gradually building up perfect operational risk management system, improving operational risk management level, then when competing with international banks our banking can succeed.