China’s Commercial Banks Operational Risk Management Research Based On Internal Control

Since the1990s, here comes a huge capital losses due to a series of operation risk of commercial bank financial case which caused a lot of negative effects in the community. Therefore, operation risk get extensive attention of bank industry, regulatory authorities and scholars, and attach great importance to, and market risk, credit risk coordinately become banking industry’s three big main risk coordinately. In China,acadimic world put more weight on the research of framework and econometric model and little did us penetrate the internal control ideas throughout the operation risk management process due to the late start, however, reasonable and effective internal control system can greatly improve the efficiency of management of the operation risk.Although,we have an initial eficct and active changes emerge in our commercial bank operation risk management in recent years, there remains a lot of operation risk management problems on the account of the incomplete internal control and inadequate enforcement.Owing the background above, this article explores the correlation between operation risk management and internal control based on the summary of theoretical and empirical study achievements we have, and explains its differences. By using income model, we evaluated the current situation of our country’s commercial bank operation risk management, and then analyze the factors from these five internal control aspects: the internal control isn’t fully formed, the internal control environment of operation risk is still weak, our ways of operation risk management far fall behind, the internal control measures of operation risk is incomplete which result in operation risk management problems, the poor information communication and feedback could hardly prevent itself from operation risk in time, internal control supervision and restraint system are not rigorous. And finally, we take lessons from advanced foreign banks to learn operation risk management theory and practice experience, and proposed to create a better operation risk control environment, establish a comprehensive operation risk information management system based on internal control, perfect the internal control of operation risk, and firmer enforencement of internal control. To guarantee the information communication between banks, to improve supervision and audit and audit skills, actively carry out operational risk management of the internal control evaluation.