Research On The Internal Control Of The Operational Risk Of Commercial Banks In China

As an industry, banking is full of risks. Scientific management sand Preventions toward various risks have direct effete on the development of banking. Presently, the major banking risks can be generally listed into 3tyPes:the market risk, the credit risks and the operational risk. Comparatively, the other two risks have arouse great attention by the fiance institutions earlier, meanwhile, the mature and complete risk management frame work of which have been set up. The operational risk has been exited for a long while, however, it is importance hasn't been recognized by commercial banks and supervision institutions. Since the 90s, a series of serious operational risk events which has brought huge losses in funds to the commercial banks and produced negative effete in the society to the commercial banks have happened in banking industry, so that the operational risk got broad attention and highly recognition from theoretical and academic sector.Because of the late recognition toward the operational risk, the banking industry hasn't formed an integrated and unified theoretical system of the operational risk's definition, classification and management methods, etc, up to now. At Present the academic research on the operation risks mostly follows the credit risk, market risk research ideas and methods, and more emphasis on operational risk measurement and management framework model, involving the internal control Management less.Firstly, the thesis reviews the research results of the operational risk in commercial banks home and abroad, then, Studies the basic theories of the internal control of the operational risk and seeks for the relationship between the operational risk and internal control by studying all the aspects of the operational risk, such as definition, clarification, management practices and so on, getting the result that internal control is the fundamental management method of the operational risk, which lay the research foundation of the thesis.Secondly, analysis and research on the operational risk status of China's commercial banks, reaching the result that the operational risk of our commercial banks mainly dues to the inefficient and imperfect internal control system, then from the internal control environment, internal controls, supervision and internal control, internal control of information communication channels, analysis of the reason of operational risk of China's commercial banks; Finally, the article against China's commercial banks internal control situation of operational risk,the existence of specific issues and shortcomings, referring to foreign banks advanced experience within the internal control of operational risk, proposed some important recommendations in polishing the system of China's commercial banks internal control of operational risk.