The Research Of Operational Risk And Internal Control Of Commercial Banks In China

In recent years, it has frequently occurred some important and serious financial cases in the commercial banks in China and brings the banking huge loss. When we study these cases, we find that most cases due to the operational risk will not only damage the banks’reputations, but also expose the defects in the operational risk management of our commercial banks. If we do not take actions, the operational risk will damage the depositors’benefits sooner or later, or even damage the financial stabilization in China. This is why I choose the theme. I wish this thesis could analyze the theory of operational risk and search the effective way and method to manage the operational risk. First of all, in the first chapter this thesis gives a brief introduction on the operational risk and internal control including the definition, character, and classification. This chapter also describes the basic types of the operational risk case and increases several special types according to the actual situation in Chinese commercial banks. Then the thesis makes a detailed analysis about the actuality of the operational risk in Chinese commercial banks and describes the main operational risk types by sample analysis. Using the incomplete dynamic gaming model is a particular way to explain the forming mechanism so that we could get the conclusion that the invalid internal control is the basic reason to arouse the operational risk and summarize the problems of the operational risk management from these aspects: thinking, managerial frame and data collection. Last but not least, based on the actual analysis, this thesis consults the New Basel Capital Accord and puts forward the guidelines and strategy, and emphasize the mostly effect of internal control to keep away the operational risk.