Industrial Bank Of Japan Dalian Branch Internal Risk Control System And Its Operating Performance

Risk in any formal sense must reflect some concept of uncertainty. For banking purposes, risk means the volatility of net cash flows of a business unit. The goal of financial institutions is to maximize the risk-adjusted returns to shareholders. Risk management is to minimize risk over the long run and make risks and returns a perfect match.After entering WTO, banking industry will start more drastic competition in domestic. Meantime, domestic commercial bank also have more opportunity to serve in new areas. It is obvious that risk management play a very important part of banking operation.The thesis, in form of survey, reveals the feature of a branch of a Japanese invested bank on the risk management. The management in this bank inevitably possesses strong color of Japanese culture, yet the philosophy - to maximize the SVA( Shareholder Value Added ) is sure of no national boundaries. Some measures of the bank are worthwhile to learn by domestic commercial banks for reference to develop the risk management most suitable to the state of our nation and improve the competition power in all respects.