Study On The Control Of Operation Risk In SME Credit Business Of SPD Bank

In recent years, with the rapid expansion of the SME credit business, in promoting the development of SME, the operational risk also cannot be underestimated. Many commercial banks, in developing the SME credit business process, the weakness of internal control, the loose key of control, the unreasonable processes of operation, lead to the huge potential risks. How scientifically and effectively prevent the operational risk, strengthen the management of operational credit risk, has become the urgent problem to be solved for theoretical and practical banking sector and the financial regulatory authorities.In this context, this paper follows this research path:theoretical study-the case analysis-the Suggestions, and Study on the prevention of operation risk in SME credit business of SPD Bank based on the internal control. First, the scientific definition of operational risk and internal control:Operational risk is the possibility of loss, due to the failure of internal processes, staff and internal or external events; internal controls include these five factors:the control environment, the risk identification and assessment, the measures of control, the communication and feedback of information, the supervision, the evaluation and correction; internal control is effective for the management of operational risk. And then, this paper analyzes the case of the Changsha branch of SPD Bank. based on the analysis of its SME business credit and the business processes, we find that its operational risk mainly behaves these aspects:operational risk before lending, operational risk in the loan and the operational risk after the lending, and point out the reasons causing these problems:the weak awareness of internal control, the lack of internal control systems, the ineffective implementation and supervision of internal control and the poor communication. Finally, from the improvement of internal control, strengthen the implementation and supervision of internal control, and the improvement of the information systems and other aspects, this paper proposes the relevant countermeasures, in order to achieve the effective prevention and control of the SME credit operational risk of SPD Bank.