Research On Information Technology Risk Management Of Local Small And Medium-sized Banks In Hunan Province

This paper briefly describes the background and practical significance of theresearch on bank’s information technology risk management, and summarizes themain connotation, classification and forms of bank’s information technology risk, andexpounds characteristics of commercial banks’ information technology risks. At thesame time, it reveals problems and their causes of the commercial banks’ informationtechnology risks.Based on the information technology risk management research of local smalland medium-sized banks in Hunan province as the main target, this paper explores themain existing problems and reasons of information technology risk, reveals thenecessity, the importance and urgency of research on information technology riskmanagement of local small and medium-sized banks. In this paper, a local small andmedium-sized banks in Hunan province is analyzed, the bank case describes occurredimportant information system emergencies and their undesirable consequences anddirect causes, longitudinally compares the risk situations before and after therectification reform, put forward countermeasures on how to strengthen and controlinformation technology risks which has good reference significance to the practice.During study period of this paper, the writer collected nearly90incident casestracked in Hunan province from year2004to2009. Besides, present informationtechnology risk situations of seven local small and medium-sized banks are provided,and it selects a local small bank with certain representativeness as a case study, tracksand analyzes time span for two years. Namely data is true and has the timeliness,certainly would be persuasive and helpful for this analysis.Through a series of empirical studies, this paper studies the conclusion: theemergence and cause commercial banks’ information technology risks has generalrules so that local small and medium-sized banks in Hunan province follow the rules,but they own personality traits. Through the "two-way interaction" between localregulators and local small and medium-sized banks, they can effectively preventinformation technology risks. Among them, the local regulators should make effectivefield inspection and off-site regulation, market access, risk assessment and so on. Itcan help financial institutions found that kind of risks, propose regulatory opinionsand urged rectify; Banking institutions implement effective corrective measures to strengthen information technology risk management, establish and perfect themechanism of information technology risk management, improve informationtechnology risk status. Through the both sides of the joint effort, it can also promoteeffectively the enhancement of information technology risk management ability oflocal small and medium-sized banks, and then effectively promote the ascension ofprevention level of local small and medium-sized banks in Hunan provinceinformation technology risk.