Risk Management And Prevention Strategies Of Commercial Bank In Our Country

Since the day that commercial bank emerges, events caused by bank risks had showed up frequently. Until the20th century, with the rapid economic and technological development, commercial banks have suffered a growing number of risk events, and the resulting loss was huge. With the rapid development of economic globalization, the operating modes of commercial banks become more international, and the situation of products and services are the same, the risks which commercial banks are facing are increasingly complex and diverse. At the same time, the trend that gradually exoteric financial industry in today’s society and increasingly competitive market also forces commercial banks involving into high risk domain. However, commercial banks devote to expand the scale and the benefit in order to increase the competitiveness, ignore the importance of risk management of commercial banks gradually, one-sided pursue the operating results without considering the existence of the risk cost, this kind of behavior brings endless potential risks to commercial banks. Therefore, fully and deeply research of the problems existing in commercial bank risk management, so as to strengthen our risk management ability and improve the level of risk management, has become China’s current major issues to be solved in the financial domain.Risk management is a complicated system in the management system of commercial banks. In order to achieve the goal of effectively avoid and control risks, the banking institutions need not only the use of advanced management techniques and tools, but also from the aspects of culture, structure, regime and system, to set up bank’s risk management culture, to improve the bank’s corporate governance structure, to improve the bank’s internal control system, and to build a comprehensive risk management system, make the concept of comprehensive risk management through the various business and each part. Therefore, this article takes commercial bank risk management system as the research object, analyzes the forms, characteristics and causes of our country commercial bank risk, puts forward the macroscopic countermeasures from the aspects of culture, regime and system, and studies credit risk, interest rate risk, liquidity risk, and other forms of specific risks from the micro angle to put forward policy suggestions for modern commercial bank risk management system. This paper is divided into five chapters, and the content structure arrangement is as follows:The first chapter is introduction. This chapter mainly introduces the background, contents and purposes of commercial bank risk management, and briefly introduces the overall thought of writing and the use of specific methods to make readers understand the urgency and necessity of research, also the structural framework and the overall thought of this paper.The second chapter is the relevant theory. This chapter firstly clears the definition and classification of bank risk, and then introduces the connotation and development of the theory of risk management, and finally makes a systematical station of the birth and development of the Basel Accords which is complied with in the current international finance domain. The role of this chapter is to make preparation for later research of risk management based on the solid theories.The third chapter is analysis of the manifestation, characteristics and causes of commercial bank risk in our country. The main risks we are facing are credit risk, operational risk, liquidity risk, interest rate, exchange rate risk, financial risk and the risk of crime and so on, at the same time it shows the characteristics of concentration, sociality and concealment. Through the analysis of various risks and performance characteristics, this chapter make us understand the regularity and particularity of existing bank risks, so as to further explore the specific cause of the current bank risky situation, including the economic reasons, political reasons, legal reasons and cultural causes and bank’s causes itself.The fourth chapter is the prevention strategies to commercial bank risk management. Last chapter points out the problems of present risk management, this chapter will find out prevention strategies and measures based on the problems of last chapter. This chapter discusses the principle of risk management of in advanced banks of the world, and then put forward comprehensive risk management countermeasures combined with the actual situation in our country. In order to get a comprehensive solution to the existing problems, commercial banks should, from the macro aspect, set up a sound risk concept, creating a favorable external environment, improve the bank corporate governance structure, establish scientific risk management framework, and improve management technology and change management way at the same time; At the micro aspect, we should strengthen the credit risk, interest rate risk, liquidity risk management, improve the internal risk control management system, deepen the reform of the human systems and improve service quality of employees. Comprehensive risk management is the direction of modern banking risk management, and the inevitable choice for modern banking industry to improve management level and enhance the international competitiveness.The fifth chapter is conclusion and prospect. This chapter draws the final conclusion based on the full analysis above, points out that the research of complex risk management theory is not comprehensive, and puts forward the suggestions and expectations for how to strengthen the risk management ability and improve the level of risk management of commercial banking industry in the future.