Research On Operational Risk Management Of The Rural Credit Cooperatives Of Shandong Province

Since the1980s, along with financial innovation, financing securitization, information technology and the financial liberalization, the financial globalization has developt fast, but at the same time the global financial industry enter a turbulent time, which the banking industry at home and abrod has had the massive operation risk event. The development path of Chinese financial institutions is different with the foreign, and compared with the commercial banks, the rural credit have many different characteristics in business operation and management system. How to prevent and control the operation risk events is the question which this article needs to solve at the background of which emerges financial globalization, liberalization and innovative products. This article mainly study the operational risk using of the quantitative and qualitative analysis methods. At the same time, this article analysis the causes of operation risk events in rural credit cooperatives combined with the actual situation in our country. This article gives suggestions to prevent rural credit cooperatives operational risk on the base of researching the actul situation.Operational risk is an important element of risk prevention in the financial institutions. Due to low quality in personnel and relatively backward management, in contrast to other financial institutions, the operation risks of China’s rural credit cooperatives are more serious. Operational risk prevention is vital to the rural credit cooperatives. The article first list the various phenomenona of rural credit cooperatives operational risk and point out that operational risks exist in the accounting operational risk and loan operations risk. Then it introduces operational risk warning system of Shandong Province Rural Credit Cooperatives and evaluates its running effect. Under the survey analysis of the three regions of rural credit cooperatives, it points out the problems of Shandong Rural Credit Cooperatives. After the analysis of the current situation and existing problems of rural credit cooperatives operational risk management, it points out the formation of China’s rural credit cooperatives operating risk. Moreover, from the three levels of the organization, system, process, it analyzes Shandong Province Rural Credit Cooperatives operational risk control system. At the last, the article gives the policy suggestions to prevent the operating risk of the rural credit cooperative, from the optimization of operation risk management management environment, establishing effective incentive and restraint mechanisms culture risk management talents, establishing operational risk database, enhancing the operating risk management consciousness and improving the staffs risk prevention consciousness etc.