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Commercial Banks Operational Risk Causes And Control

Posted on:2005-08-04Degree:MasterType:Thesis
Country:ChinaCandidate:G XuFull Text:PDF
Abstract/Summary:PDF Full Text Request
This paper studies the operational risk of commercial bank. Because the study on operational risk is lagged compared to the study on credit risk and market risk. The paper tried to do some useful academic research on it. And the paper analyzes the reasons of operational risk origination and gives some advice to control them.In Chapter 1, the paper defines what is operational risk and what it includes. What the paper wants to point out is that some risks, which used to be thought as credit risk or market risk in traditional conception, are actually operational risk. What's more, the risk occurring in the process of manage all kinds of other risk is also operational risk. Such a definition enriched the content of operational risk and accordingly operational risk management should be paid more attention to.In Chapter 2, the paper analyzes the reasons of conducing operational risk origination. This paper didn't analyze the reasons of all kinds of operational risks, however did it through the lens of the analysis of reason concerned with "human beings".Firstly the paper analyzes the relation between financial corruption, including banking regulation corruption ship and employee corruption, and operational risk, and then analyzes the relation between moral hazard and operational risk, bounded rationality and operational risk, non-rational behavioral intentions and operational risk.In Chapter 3, the paper gives the advices to control the operational risk based on the analysis in Chapter 2. These advices are:To establish effective anti-corruption mechanism to defend corruption;To establish effective incentive mechanism to control moral hazard;To establish effective human resources mechanism to control bounded rationality;To establish effective internal-control system to control non-rational behavioral intentions.
Keywords/Search Tags:Operational Risk, Non-rational Behavioral Intention, Internal-control System
PDF Full Text Request
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