Research On Operational Risk Management Of China Commercial Banks Based On Internal Control

Commercial banks are engaged in high-risk industries, with the financial regulation loosened and the development trend of business globalization in recent years, operational risk events increased day by day, especially serious cases have occurred more often, which not only caused huge losses to the commercial banks, but also bring negative effects on bank’s reputation and social image. The search of China’s banking industry on the operational risk started late, which has not matured yet in both aspects of theory and practice, so the development of it needs to be improved. Therefore, we must improve the awareness of risk prevention, strengthen the necessity and urgency of the operational risk management.This paper systematically review and summarize the relevant theory of operational risk management. By consolidating literature and summarizing and analyzing academic research of scholars at home and abroad systematically, it is considered that the internal control theory has relevance and importance on operational risk management. On the basis of theoretical studies, the article stands on the current operational risk status, proposing five risks faced currently. Through concluding China’s commercial banks operational risk management mode, reveals the main problems existing in the management. Finally, learn from foreign advanced theoretical and practical experience on the banks operational risk management, based on internal control, proposing countermeasures and suggestions to solve China’s banking operational risk management issues.According to the literature and empirical research findings combined with the present situation of China’s commercial banks operation risk management, from the perspective of internal control management, internal control is proposed to build the value chain model, making risk management integrated with capital management in order to achieve the optimal goal of maximizing the bank value. Furthermore, in the aspects of strengthening internal control, creating a good internal operational risk management environment, improving the ability of operational risk identification and control, it is discussed how to improve China’s commercial banks operational risk management measures.