A City Commercial Bank Counter Operational Risk Analysis

In recent years, A commercial bank (called A bank in the following contents and article), has adhered to the scale, quality, and profit, pursuit of the business growth, strengthened the internal control management in the guide of administrative authorities. A bank has done a lot of work on preventing risks and made some achievements. However, A bank is on the process of the transformation from traditional control system to comprehensive risk management; expanding the outlets coverage in every district and counties of the whole municipality; cross-regional branch setting and achieving listing recently. All these factors need A bank to increase its management. Meanwhile, the data from CBRC shows that 26 cases over one million yuan occurred in the banking system in the first four months,23 cases concentrated on the traditional business such as deposit and loan, cash and settlement, which accounted for 88% of all cases. Therefore, as a highly-developing bank, A bank has to pay much attention to the counter operational risk.This article firstly has a deep analysis on the problems and reasons of the following 7 aspects:counter operational risk control system, risk control basis, risk control object, risk control procedure, risk control key service point, risk control measures and risk control mainstay. Through the analysis, we have a better understanding of the defect of the A bank counter operational risk management, and do the next improvements.As for the problems mentioned above, the article proposed the specific measures:strengthen the consciousness of responsibility of the risk, rooted the risk prevention consciousness firmly to all level of risk managers; establish and perfect the counter operational risk management system in organization, procedure, performance appraisal, responsibility system; perfect the system, strengthen internal control and executive ability; adopt suited indicator system and risk measurement technology, manage the counter operational risk scientifically; clarify job responsibility at all levels of supervision, improve the supervisory system, establish an efficient regulatory information platform; innovate counter operational risk prevention means, adopt scientific means to improve the counter operational risk prevention; implement the internal supervision, accounting manager appointment system and teller scoring evaluation system; establish compliance management and risk culture. All these measures are comprehensive and detailed, and some of them are practical, and will guide the counter operational risk prevention.The importance of this article is to analyze the problems and reasons of the counter operational risk management and solve them. Although some proposed measures are imperfect enough, some are far to achieve, and some are impractical, the author believe that if all of us think and practice positively, A bank counter operational risk management will be certain to perfect and improve continuously.