| Strenthened risk management is the key aspect for comprehensively deepening banking reform, improving the ability to serve the real economy and promoting robust management in the banking industry. In recent years, the outcomes of the reform and development of China’s major commercial banks have been highly praised by the community. However, due to multiple internal and external factors,there has been many operational risk incidents in the banking industry, resulting in adverse effects.During the developing process, Branch S has made significant achievements in recent years, but still has not overcome the shorcoming in operational risks that are widespread in comercial banks in China. Recently, there were several operational risk incidents with large amount of money involved, resulting in bad social impacts. Based on this situation, the paper chooses "operational risk management in branch S of commercial bank A" as the research subject. This paper analyzes current operational risk control mechanisms in branch S, identifies existing problems in risk management,and proposes strageties for management and development.First, the theory for operational risk management in commercial banks is outlined with a focus on its meaning, origin and classification. The status of operational risk management in comercial banks accoss counties is then analyzed, and useful experiences are summarized. Based on these analyses, this paper introduces the progress of promoting operational risk management through special campaigns, as welll as the platform construction and its impact on operational risk management in Bank A. Next, operational risk management issues in branch S are identified, and stategies for improving operational risk management in branch S are proposed based on operational risk management experiences in comercial banks accoss counties.The major problems in operational risk management of branch S are summarized as follows: the lack of understanding of operational risk results in poor implementation of risk control; the risk management team does not have suffcientpower and responsibility; and the centralized online platform brings new operational risks. To solve these problems, it is necessary to strengthen staff training, improve employee’s understanding of operational risk, optimize the internal structure,strengthen operational risk prevention, and improve risk control techniques. With the help of emerging technologies such as "big data" carries on the quantitative analysis of operational risk, provide advance warning for operational risk prevention and control. |
