Empirical Analysis On Commercial Bank Operational Risk Management In China

In the New Capital Accord (2004),the operational risk was classified as the third largest risk just after the market risk and credit risk by Basel Committee on Banking Supervision.It was incorporated into the scope of capital supervision. According to the New Capital Accord (2004),banks should maintain the minimum capital ready in order to cover the potential loss of operational risk,as same as the treatments of credit risk and market risk. The attention to operational risk and regulatory requirements are major breakthroughs in the New Capital Accord (2004) contrasted with the New Capital Accord(1998).It has represented that the international financial community had valued the operational risk management increasingly in recent years.It is a new requirement both in the general risk managements and the stability of banking system. The study of operational risk started late and the management level is low in the commercial banks of our country.These cause the bank operational risks happen frequently.It has damaged the image of banking in our country heavily. So,it is important to study how to measure the operational risks scientifically and effectively.On the above basis,it is more important to improve operational risk management level.This thesis firstly defines the definition, characteristic and classification of operational risk.This part introduces how to identify and assess the operational risk.It also studies and explores the acutalities,problems and causes of the problems from macroscopical factors and microcosmic factors of operational risks in our commercial banks.It discloses that it is important to strengthen the management of the operational risk in the commercial banks of our country. Then,this thesis studies and explores how to use Monte Carlo Simulation Model to measure the losses of operational risks and supervised capital. Based on the management of operational risk, causes of operational risk and results from the study of practical example,this thesis shows the author's suggestions on the internal control and the external supervision.