Small And Medium-sized Commercial Banks Operational Risk Control Research

Operational risk is one of the most important risks for the commercial banks in the business activities. Long-term since, our country bank credit has been the main way of financing, credit risk is widely considered to be the most important types of risk in commercial bank, operation risk is often ignored by people.Entering the21st Century, with the rapidly changing financial markets, bank operational risk problems appear and show an accelerating upward trend. Recurring bank operational risk cases, involving not only local small and medium-sized banks but also the four State-owned banks, and involving not only a few tens of millions of Yuan but also more than hundreds of millions or even billions of Yuan, make the banks suffer a great loss. How to effectively strengthen the control of operational risk has become an important issue to be solved for commercial banks especially the small and medium-sized commercial banks. The main contents of this article are as follows:First, according the new Basel Capital Accord, based on conducting the in-depth research and analysis on the status quo of operational risk management and research of domestic and foreign commercial banks, taking the risk management theory, the internal control theory and the business process reengineering theory as a guide, using kinds of research methods such as factor analysis, system analysis, case analysis, this article analyses the influencing factors of operational risk of commercial banks, and puts forward the countermeasures for control of operational risk in small and medium-sized commercial banks.Second, taking MS bank as an example, on the basis of in-depth analysis about the status of operational risk management and the cause of operational risk, this paper puts forward the control countermeasures of operational risk in small and medium-sized commercial banks from the following five aspects:The first, to strengthen the risk management consciousness and cultivate risk management culture, including establishing a concept that risk management is the lifeline of commercial banks, setting up an idea of balance development between banking operation and risk management, and cultivating the bank-enterprise culture of whole staff concerning on and participating in the risk management; The second, to integrate risk management function and strengthen risk inspection and supervision, including the establishment of the authority of operational risk supervision organization, creating a regular communication platform for operational risk management, developing clear operational risk monitoring plans, the use of efficient operational risk monitoring tools, and the share of unified operational risk monitoring information; The third, to implement risk prevention and control system and screen potential risks timely, including to build a internal control line of defense of the operational risk, and to implement key positions rotation system, the accounting system and the internal audit system; The fourth, to construct risk management platform and improve risk management technology, including strengthening the construction of advanced operational risk management IT platform, speeding up the advancement of financial technology innovation which taking the risk quantification as a core; The fifth, to strengthen the staff construction and improve the staff quality comprehensively, including developing and implementing talent strategy for powerful bank, enhancing staff training and improving the quality of staff, and the implementation of operational risk management assessment.There are two innovation points in this paper. The first one is by analyzing concrete cases, reveals three basic causes of operational risk in Chinese small and medium-sized commercial banks, namely the deviation of business guiding ideology, unsound management system and its implementation, and relatively backward risk management techniques; The second is points out through the argument that, for the effective control of operational risk in small and medium-sized commercial banks, we must set up correct operational risk management concept, establish an perfect overall risk management system having a full, the whole process, all-around function, and strengthen the institutional construction of long-acting mechanism. But because of limited information and capabilities, few quantitative analyses is adopted in this paper, some countermeasures still remain at the theoretical level, and its operability needs to be improved.