Operational Risk Management Research, China's Commercial Banks Based On The Anp Method

Operational Risk,as one of main risk types faced by commercial banks in their operation and management,includes a wide range of risks of commercial banks as part of a wide range of internal risks,and has an inestimable effect on commercial banks. Increasingly complex financial instruments and information systems have increased the possibility of occurrence of operational risk,for instance,not being familiar with financial instruments could lead to abuses,data entry errors could lead to erroneous risk assessment, and internal control failures brought about a great loss.Many risk cases of commercial banks can be attributed to the failure of operational risk management.On the basis of explaining connotation of operational risk,the management procedures,framework and principals of it,we analyze deeply the current state of operational risk management in our country and the frequently-used measurement method of it.On the basis of taking full account of the independence and feedback between the factors influencing the operational risk,we establish a evaluation model based on the Analytic Network Process,using which study a case.The results show that the main factors impacting the operational risk are internal control,internal fraud,external fraud, the complexity of process design and so on.Internal control is a long-term cause.Internal fraud is important cause.External fraud and complexity of process design have a certain effect on operational risk of commercial bank.So,in order to manage the operational risk of commercial bank effectively,we must build a perfect internal control system and formulate reasonable supervision strategies and scientific and rational risk management policies to strengthen the supervision to internal staff of banks,and then,we should set up standardized operational processes for each business,and give the staff relevant training and risk education.