Network Of Banking Operations, Risk Management,

The quick progress in Internet and information technology, along with the boom of e-commerce, causes fast development of Internet banking. The fundamental characteristics of the Online banking, particularly its trans-national network, the speed of change, the complex operational and security risk, lead us to conduct a study of analyze and manage the major risks associated with Internet banking, formulate risk management principles to reduce impediments. My paper is focus on Risk Management of Internet Banking, mainly about identifying, assessing, managing and controlling the risks.This paper argues that compared with the traditional commercial banking, Internet banking also encounter the internal risks and external risks, however, the risk factors and influences imposed by those risks are quite different, especially some risks which are caused by e-money and e-settlement services of Internet banking. Generally, operational risk, reputation risk and law risk are the major risks of online banking.After identifying and analyzing the risks, which Internet banking would meet, we can make a conclusion that security is the primary problem of the Internet banking. In another word, security is a kind of guarantee for more customers. As a result, in the paper, we must take both technological and management measures to prevent the risks.The Internet banking changes quickly with the development, which will causes new risk factors. So, this paper argues in the end that we must regularly assess the risk manage results and modify the solutions of risks for new situation and get better manage performance.