Research On Process Optimization Of Compliance Risk Management Of Huaxia Bank,Tianjin Branch

During the aftermath of global financial crisis in2008, the request of bankingcompliance risk management raised further. In fact, some scholars in Europe and theUS had already started to study the issues on compliance risk management at as earlyas1980s. When it came to21stcentury, Basel Commission, despite the famousaccords charging the banking regulation, released the Compliance with InternalCompliance Department of the Bank to stress the significance of compliance riskmanagement and the independence of compliance department. This consultativedocument has owned tremendous attention ever since. Later on, Chinese BankingRegulation Committee release Commercial Bank’s Compliance Risk ManagementGuidelines. Today, the guideline has been the core and authority of compliance riskmanagement in China.For the uncertainty in economic and financial environment remains, it is moreand more pressingly for banks to strengthen their ability of compliance riskmanagement. However, the research in the past focuses at the industry level orintroduction of the experience of foreign banks rather than the analysis of challengesfacing our domestic banks.In this paper, we study the case of Huaixia bank, Tianjin branch. Firstly, weintroduce the current situation and main problems of compliance risk management.Then, we compare the advanced experience of international and domestic banks withour case to summarize the shortages and possible improvements. Finally, we analysesthe issues linking to compliance risk management in detail, including effect factors,the goals and principles of compliance risk management improvement, the methodsand operations of compliance risk management process optimization.