Research On The Risk Management Of Internet Banking Of Bank Of China

Banking is a special industry which is in operating risks. In the high development of technology and Internet, as a new model of banks in China, after several decades of development, Internet Banking has gradually become an alternative against traditional banking business with its new innovation base and source of qualitative competition. Internet Banking, as an innovative online service which is based on the traditional banking business has broken the bank counters limit time and space, not only has general banking risks, but also facing new type of risks. These risks are more influential and dangerous, which become an important factor in the development of China’s Internet Banking.The Bank of China as one of the four state-owned commercial bank has the minimum number of outlets and customers. Expanding the online channel business vigorously, accumulating the Internet Banking customers rapidly become the most effective way to developing its business. The Bank of China has accumulated101million personal internet banking,2.2million corporate internet banking, the mobility of online trading has reached to59.92%,since the beginning of1997when its Internet Banking start up, to the end of December2013. The rapid development of Internet banking demands a higher risk management. How to avoid all risks of Internet Banking effectively in the rapid development of business has become a new problem.This paper analysis the risk-management of Internet Banking in the Bank of China, and discover problems it faces. The paper adopts the method of combining the theory and practice, case analysis, questionnaire method, AHP also other methods, according to the research literatures in Internet Banking risk management, it bases on some theories in the background of Internet Banking risk management. Also the advanced experiences and models in Internet Banking risk management in and abroad have been combined with their work experience and case studies. Building Internet Banking risk assessment and raising the risk management measures practicable for the Bank of China, to enhance the risk management capabilities, to promote the rapid development, is the effective way to achieve the goal of "recreate a new BOC in Internet Banking".The innovation of this paper is that to analysis the status of the risk management in the Bank of China’s Internet Banking, to build the risk assessment system. The paper attempts to trance the qualitative to quantitative analysis, it combined with the current status in risk management of the Bank of China, raised a comprehensive risk management theory and active risk management theory, which can solve the problem of "a place on the chaos, a closed die" in China’s Internet Banking, enhance Internet Banking risk management capabilities.