Commercial Bank Risk Management Compliance

Finance is the core of modern economy. The commercial bank engages in business facing the risk. With the outbreak of the financial crisis and the sovereign debt crisis, financial risk has been sustained attention. From the daily financial cases, the bank staff irregularities and illegal operation is one of the main causes of financial risk, and the reason encourages to this illegal act is the deficiencies of internal bank compliance risk management system.Due to the lack of credibility of financial institutions and an increase in cases of compliance risk, compliance risk was gradually concerned by commercial banks. Similar to market risk and credit risk, compliance risk becomes part of risk management in China’s commercial banks. With CBRC promulgating the "Commercial Bank Compliance Risk Management Guidelines" in2007, compliance risk management system had gradually built up in China’s commercial banks, and achieved initial stages of effectiveness. However, because time paying attention to the domestic shorter compliance risks is short, there are still a lot of problems in compliance accountability, compliance culture and other aspects.To meet regulatory requirements and to avoid sanctions services, the three core functions of compliance risk management include recommendations, advisory functions and communication functions. From the compliance department status and working status point of view, it performs the advice, consultation and communication. Compliance department mainly recommendations to senior management from the field loopholes and shortcomings, and it also providse advice to other business lines within the line and avoids the occurrence of compliance risk.Through communication, understand the regulatory and feedback from the banks and customer, it is clear for the risk identification and management. It is the duties for compliance risk department for risk identification, quantification, and evaluation and monitoring, reporting.The first part of this article is the basis of compliance risk management theories, mainly introduced the basic concepts and theories of commercial banks; The second part described the status and inadequate of the compliance risk management in China’s commercial banks. Including the development of compliance risk management process, model, management characteristics and problems of commercial banks. In mode analysis to Shanghai Branch of Minsheng Bank and Tianjin Branch of Huaxia Bank for example, this part summarizes the development path of China’s commercial banks compliance risk management model; The third part is the case studies section to Linyi City of rural credit cooperatives for example, co-compliance risk management mechanism for RCC is a new thing, it needs a long time to accommodate the mechanism. In this process, we need to change the original RCC management habits to adapt to compliance risk management mechanism. As soon as possible in order to achieve integration, the need to accept the compliance status of rural credit cooperatives. This article described an overview of rural credit cooperatives in Linyi, in the analysis on external environment of compliance risk management, the focus is on the plan and results of risk management implementation. The fourth part is on the deficiency and strategies on compliance risk management of China’s commercial banks. From the deficiencies of China’s commercial banks compliance management system, compliance mechanisms of accountability and compliance risk management, this part gave the appropriate countermeasures.