Research On Bill Risk Management At H Branch Bank Of China Merchants Bank

After entering WTO, financial industry of China has changed dramatically indepth and magnitude. On the other hand, the development of information technologyspeeds up the innovation of financial products and change of operation environment.When the new service and products emerge and traditional offerings are improved,banks start to broaden their business. In this case, bill business is exposed to theconsumers.However, bill business is with risk. This study takes H branch bank of ChinaMerchants Bank as sample to propose some measures against operation risk throughinvestigating and analyzing its bill business situation in order to reduce and preventbill business risk.Through analyzing the bill business of H brand bank, the research finds out fourkinds of main risk that are credit risk, operation risk, policy risk and interest rate risk.According to the experience of other banks and theory of bill risk management,the research proposes some measures to manage the bill risk. The tactics to managecredit risk include standardize the operation procedure, monitoring the flow ofdiscount cash, communicating with superior timely and improving risk awareness. Toprevent operation risk, the bank needs to solidify internal construction, ameliorate thesystem of bill business, bill issues and so on. Training the staff and manager isanother method to be against operation risk. In order to prevent policy and interestrate risk, the bank needs to acquire and deliver accurate information and train the staff.Monitoring department is also important in being against policy risk.