The Research On Risks Management In Commercial Bank's Credit Card Business

Since 2003, the development of credit card market in China become rapidly and substantial. Fast growth of the quantity of credit card , rapidly increase of credit card offers,improvement of the environment for accepting credit card, expand domestic demand greatly, which have a lot greconomic and Social. However, when we enjoy the convenience and material wealth it has provided, we have been taken risks which are contained in credit cards also. How to build effective management, how to offset the loss and prevent risks, is a serious consideration. The papers discuss briefly the Current Situation of the credit risk,oblique risk,operational Risk's management. In the control of the credit risk, there is many imperfection: the reunion individual credit rating system of the whole country have not been set up, which sit heavily on the reality and accuracy of the information in commercial bank, On the base of the credit information, the credit scoring in banks is unscientific have been in primary stage , which is not technical and scientifique, which is short of the statistical model to support; in terms of credit legal ,we still in a state of emptiness, that make the credit card market is lack of legal safeguard. The writer suggest commercial bank and central bank of China can combine with the VISA,cbrc office and justice department to build the information platform all over the country, which can solve the deficiency of the information; optimize the quota we use now; import advanced grading technology, open up the statistic model that suits national conditions; the bank should attract talented people who master statistical knowledge and economic literacy ,gunning for a promotion in the scoring system.There is many in the control of fraud risk. Achieve EMV migration is the key to lower the fraud risk, but the massive cost and incomplete market are the obstacle to success, so make many chance for the wrong crowd. The behaviors which make use of the ATM and POS to cheat others become more and more, the author suggest that we can solve the enormous sum of money by prolong the transition period which make two cards in one combined; search for more principal part such as the government,enterprising man,which can relieve the banks stress; give strong monitoring to specially engaged commercial business, control the last process of credit card's appliance, wage the battle against illegal transactions; strengthen the supervise to the ATM; at last, we should Inculcate the cardholder with a sense of security, careful about every conduct, leave no chance to the unlawful.Operational risk is the most controllability to commercial bank. At present, credit card market makes a extensive production and management, some banks neglect the risks and broaden business, adopting a "follower" strategy. The employees overlook the risk management consciousness, simplify the working process by themselves, even to infringe any rules, make lot's of hidden danger to the credit card's safety. The writer suggests that the operational risk management should make particular operation the breakthrough point. especially for auditing,credit extension,supervisory control, the banks must follow the instructions faithfully and transform the modes of business operation. The management should insist on people oriented, pay more attention to ideological, political and moral education about the employees. Strengthen professional competence and the sense of duty, give proper material award and spiritual drive, ensure the legal of the employees behaviors. At last, the banks have to consummate the internal control system, it's not only in favor of the credit card's risk management, but also to all business in banks, foster all-around culture of risk management, build a internal control organization full of authority and independence.The credit card industry in China is not only a new sunrise industry, but also a vigorous trade. There is before us a heavy responsibility and a long way to go to manage the risk, but we have confidence to overcome these difficulties, to improve it gradually, create a favorable environment for credit card industry.