Credit Operational Risk

This paper discussed the recently released New Basel Accord, analyzes theLetter of Credit operational risk, point out the measures of resolve the Letter of Creditoperational risk according to the New Basel Accord requirement.Firstly the paper gives an overview of evolving process of Basel capitalAccord ,analyzes the implications,characteristics and supervision of operational risk.Then the paper narrates the Letter of Credit operating process and point out theLetter of Credit operational risk resulting from four side: system,person,computerand fraud。Ultimately the paper provides the measures of keeping away the Letter of Creditoperational risk according to the New Basel Accord requirement.