The Research On Chinese Commercial Bank’s Operational Risk Based On AHP And Fuzzy Synthetic Evaluation

As the financial hub in modern economic society, commercial banks face manyrisks anytime. Scholars at home and abroad devoted to research market risks andcredit risks faced by commercial banks while ignoring the operational risks. However,operation risk cases happened frequently in recent years in many countries and thesecases brought huge losses to banks even led to bankruptcy. So scholars began to payattention to this ancient risk which accompanied with bank appearing. The New BaselCapital Accord has brought operational risk into risk management framework forminimum capital supervision. It marks that operational risk management research hasstrode in a new stage.Chinese commercial banks began the research of operation risk is later thanforeign countries. Due to lacking operational risk consciousness, China commercialbanks didn’t build operational risk loss data and we have not found an effectiveoperational risk measurement model so far. So it is very important to search for oneeffective estimate and measurement model. Based on this purpose, the contents ofstudy in this paper are as follows:Chapter one, gives an account of the threat of operational risk for commercialbanks combined with a large number of operational risk cases and explains theimportance to guard against operational risk. Then, it summarizes the theoretical andrealistic significance of the paper. On this basis, it summarily introduces domestic andforeign research from recognition, estimate and management. At last, the paper givesthe research method and innovations.Chapter two, at first, the paper expounds operational risk history and finds thatoperational risk of Chinese commercial bank has some unique characteristics becauseof special economic development in China. Second, it summarizes some universaloperational risk definition and gives operational risk of Chinese commercial bankcombined with unique characteristics of our banks. Third, the paper analyzesparticular characteristics of operational risk in China. At last, the paper analyzes thesource of operational risk from macroscopic angle and microcosmic angle combinedwith unique characteristics of our banks.Chapter three, at first, it gives some recognition programs of operational risk andsome operational risk recognition methods that is Self-Evaluation, Key RiskIndicators and Delphi Method. Second, the paper expounds some operational risk evaluation methods used universal internationally that is COSO Internal controlframework, The Basel Committee on Banking Supervision Internal control framework,Guidelines for a comprehensive report of England and Scorecard Approach. Third, thepaper analyzes some excellent measure methods of operational risk universalinternationally that is Basic Indicator Approach, Standardized Approach andAdvanced Measurement Approaches. At last the paper analyzes actual situation ofChinese bank and operational risk characteristics in Chinese banks and points outmanagement limitations in Chinese commercial banks.Chapter four, the paper gives some construction principles of operational riskevaluation index system according to actual situation of Chinese bank and operationalrisk characteristics in Chinese banks and then construct the evaluation index system.Chapter five, the paper expounds the basic idea and principle of Fuzzy SyntheticEvaluation and analyzes basic model steps and some weight calculation methods. Thispaper selects Analytic Hierarchy Process to calculate weight according to its accuracyand rationality. Then, it select one incorporated commercial bank HUA XIA bank asthe evaluation object and use the model to test operational risk of HUA XIA bank. Atlast, the paper analyzes operational risk management status in HUA XIA bankcombined with the evaluation index system.Chapter six, this part mainly proposes some solutions of operational riskmanagement according to the test result in the model from improving staff quality ofcommercial banks, process control, information system construction, strengtheningoperational risk supervision, perfecting the internal control mechanism and capitalallocation.Based on advanced operational risk research methods at home and abroad, thispaper attempted some exploratory jobs in the hope that these researches can supplysome references on estimation, measurement and management for Chinesecommercial banks.