Analysis Of Operational Risk Management Of Dezhou Bank

It’s reported by the media that there has been a lot of operational risk cases inChinese commercial banks in recent years, from the staff of China Bohai Bank divertingcustomers’ deposit for loan to the super swindle faced by Qilu Bank, from a president ofsub-branch of Agricultural Bank of China exiting with200million of illegal capital raisingto frequent cases occurred in the e-bank system in China Everbright Bank. These casesprovide an alert for both the banking supervising institutions and the risk managementdepartment of commercial banks. However, Operational risk is a kind of risk commercialbanks have to bear in operation and management. The goal of operational riskmanagement of commercial is to reasonably control the scale of operational risk, toprevent from serious operational risk loss, to calculate the risk-weighted assets inoperational risk in a scientific way and save the economic capital. Now Dezhou Bank,where the author works at, also faces with a severe situation in operational riskmanagement. It’s imperative under the situation for her to improve the performance inmanaging the operational risk.In this paper, we review the previous literature on operational risk management ofdomestic and overseas commercial banks, make the best of the existing research findings,use the theory of operational risk management of commercial banks as reference, adoptthe methods of reviewing literature, comparative analysis, normative analysis and thecombination of qualitative analysis and quantitative analysis to compare the practice ofoperational risk management between domestic and foreign commercial banks. In addition,provide some advices for Dezhou Bank to construct operational risk management systemwhich meets the standards of the Regulation. In this system, the management strategy,technical process, infrastructure and environment are included.