The Research On Enterprise-wide Risk Management Of China’s Commercial Banks On Basis Of Basel Ⅲ

Commercial bank is a kind of enterprise which management risk, theoccurrence of the individual risk tends to cause the overall systemic risk, whichleads to the volatility of the whole economic system. Under the background ofeconomic globalization, one country’s financial crisis will quickly spread to othercountries, lead to the financial tsunami of the world. Therefore, both theregulatory authorities and commercial Banks are committed to the research ofrisk management. After repeated research and comparison, the comprehensiverisk management was considered to be the most effective risk management model.The Basel capital accord provides the most important theoretical guida nceand practical guidance for the study of comprehensive risk management. In theaspect of theory, the Basel capital accord classified the risk into eight, depicted arisk management which use the capital as the tool, provided a management modelwhich can covered all the risks. In the aspect of practice, the Basel capital accordprovides many kinds of risk measurement method for different types of risk, suchas the rating method, internal model method, etc. Basel also constantly improveitself in the process of practice, it not only put more types of risk into theregulatory scope, but also becoming more stricter to the requirement of riskmanagement. In order to adapt to the new international regulation, change thebackward risk management, China’s commercial banks need to establish acomprehensive risk management system, to enhance their ability to cope withrisks, improve the international competitiveness.Firstly this article introduced the background, purpose and significance ofthe research, summarized the research status at home and abroad, and thendiscusses the implication of the commercial bank’s comprehensive ris kmanagement theory. Through the analysis of Basel III content, we obtained theoverall risk management framework under the Basel III. This paper summarizesthe current situation and the problems of risk management of commercial banks in China, and introduces a risk measure method—VaR, which is used to measurethe risk of Shanghai pudong development bank. Finally, aiming at the existingproblems in China’s risk management, this paper proposed suggestions about theestablishment of comprehensive risk management system.