Bank Of China, Shenyang City Branch Of Financial Risk Control

Any policies of the Commercial Bank can be classified into three key elements: amount of money ,time and risk. The risk of the bank comes from all the uncertain elements which related with all the business of the bank. As the promise of the opening up of the financial industry carrying out and the fierce competition of the financial industry ,the state-owned commercial bank loses its monopoly advantages in the fields of organ ,market, business, talent and strategy .As reforming the property right system, changing the management mechanism and strengthening the position of the enterprise legal person. The risk of management is larger and larger. We must strengthen the management of the financial affair risks.This paper first talks about the definition, kinds and characteristics of financial affair risks. On the basis of introducing the operation condition of Bank of China Shenyang branch in 2002,we analyze the main financial affair risks in the operation and the causes of the risks. We also expound every kind of financial affair risks which will appear in the bank operating and necessity of improving the management of financial affair risks.Through the international competition, we find the gap and pose the following feasible financial affair risk control strategy:(i)risks should match profits reasonably;(ii)rectify the given credit mechanism and digest bad property; (iii)strengthen the risk management of interest rate and the rate of exchange sensitivity;(iv)enhance the risk management of business off balance sheet;(v)the expenses management should follow the performance principle;(vi)change the financial affair analysis from the past profit analysis to financial affair risks;(vii) deepen internal control system developments, enhance accounting information publishes.