Research On Chinese Commercial Bank Risk Management Organization Structure

Since 2006, Chinese banking have fully liberalized restrictions on foreign banks. According to the file 《China Banking Basel Ⅱ Implementation Guidance》 published by the China Banking Regulatory Commission in 2007, all kinds of domestic commercial banks have begun to promote the implementation process of the new Basel Capital Accord in recent years, and made a lot of useful attempt in comprehensive risk management. Commission published the 《commercial bank’s capital management approach (Trial)》, establishing the capital management standard and the advanced approaches, in 2012. In April 2014, the CBRC had approved the ICBC, ABC, BC, CBC, CTB, CMB to join the new Basel Capital Accord in according to 《commercial bank capital management (Trial)》, so these six banks became the first ones implemented the advanced methods of capital management.However, most of the banks still have many drawbacks and defects, such as risk is not covered comprehensively, the risk management departments lack of independence, the risk management reporting system is imperfect, the risk information management is hysteretic. Therefore, this paper takes the risk management organization structure as a viewpoint to introduce the theory of risk management organizational structure in detail, and selects JP Morgan Chase Bank, Citibank and other multinational banks to compared with Construction Bank,Industrial and Commercial Bank of China, etc., with analyzing the typical architecture and advanced experience of the international banks, thus I can take the special situation that the total branch system designed according to the administrative division and the experiences of some banks into account, and propose a design that based on Chinese banking’s characteristics. At the same time, I make some advises of optimizing the risk management process, improving relevant aspects of supporting mechanisms and maintaining the independence of risk management, and so on. I expect to be able to make some useful reference for Chinese overall risk management in banking, so as to enhance the risk management level and core competitiveness.