Research On International Remittance Operational Risk In Bank Of China Beijing Branch

ABSTRACT:With the development of the commercial banks has grown and international economic development, the international trade has been significantly improved year by year. Lead to the operational risk exposed is endless, therefore, for the operation and management of risk oversight by all commercial banks have gradually attention. The Basel Committee issued Basel Capital Accord Ⅱ in.2004, which give the operational risk a clear definition and related guidance on operational risk management. Afterwards, China Banking Regulatory Commission issued a series of documents as operational risk management guidance.After an intensive study of Basel Capital Accord Ⅱ and other domestic and abroad related literatures, the author introduces the definition of operational risk, classification and supervision of operational risk management processes and methods. This theory will be applied to international remittance operational risk management of the Bank of China. This paper introduce the processes and characteristics of international remittance in Bank of China Beijing Branch, and analyses the operational risk management problems of the international remittance. Point out some reasonable proposals and related management practices, such as creating a culture of compliance, improve performance management and then demonstrates how to use The Standardized Approach to allocate capital in accordance with operational risk.The innovation of this paper is that it has presented rationalization proposals to improve international remittance operational risk management for the Bank of China Beijing Branch, based on the analysis of existing problems in current work.