Research On Managent Of Operational Risk Of Yingzhou Rural Cooperative Bank

Operational risk is one of the main risks a bank facing in its operation. It is a kind of risk that is relatively hard to manage. Especially in recent times during which big cases happen to the banks frequently, the operational risk has been the major risk a bank is facing and the nodes in management. Criminal offence happened frequently in domestic banks in recent years. Accordingly, the domestic banks successively conducted several rounds of specific governance and thorough examination on the cases upon the request by and under the instruction of China Banking Regulatory Commission. The trend now has been changed, however, similar cases still happens repeatedly.With the continuous happening of the cases of the losses due to operational risk, the operational risk is becoming the focus of the theorist and the banking industry, which is now one of the three main risks that the banking industry has to properly manage. Comparing to that of the market risk and credit risk, the understanding, knowledge and management of the operational risk of Yin Zhou Rural Cooperative Bank is relatively in lower level. To control and prevent the operational risk is a long term task in risk management of Yin Zhou Rural Cooperative Bank. In the rural cooperative banks of our country, the ubiquitous issue of the asymmetry of the internal stimulus and responsibility objectively resulted in the staff’s shrinking from shouldering the responsibility. Fortunately, as the regulatory authorities and the banking industry has been attaching more importance to the operational risk, it is meaningful to make efforts to do research on how to strengthen the identification, measurement, and management of the operational risk in order to enhance the ability to prevent and resolve the risk, and to do study on the experience of the rural cooperative banks in developed areas in preventing and resolving the operational risk to be the reference for other rural cooperative banks in their healthy development and management.The essay mainly bases on the study of the operational risk cases happened in Yin Zhou Rural Cooperative Bank. It has dug out, through on spot selective examination to identify, analyze, judge and measure the operational risks, the underlying problems of the operational risk the bank is facing. They are organization structure, the staff, internal control, information technology and internal audit. It also analyses the problems exist in the process of the management of the operational risk of the bank. Finally, by referencing to the successful experience in operational risk management and scientific organization structure of oversea banks, it draws a blue print for the management of the operational risk of the bank, focusing on the issues of staff management, risk management structure, flow management of operational risk, internal control system, information technology and the audit, for the goal of comprehensive risk management, in order to maintain the vitality and creativity, and to sharpen the competitive edge of the bank.