Research On The Operational Risk Of Commercial Banks In China

Commercial banks are not only a high-risk industry, but the core in financial market,so how to avoid and control the risks has become a main question for both domestic and foreign banks. The risks that commercial banks mostly face are credit risk、market risk and operational risk,and operational risk has not been valued for a long time so that it has not formed a complete theoretical system until now. In the 1990 s, operation risk events have frequently happened around the world, which makes bank supervision authorities begin to aware of the importance of operation risk. On June, 2004, Basel on Banking Supervision issued “Basel New Capital Accord” to put the operation risk into the frame of supervision and make it has equal status with credit risk, market risk which means it has attracted the global attention. In China, although the “Notice About Increasing Efforts In Resisting Operational Risks” shows that it has already notice the question, there still have some defects such as starting late and the complete of prevention system. China’s financial industry must to face the fact in order to keep it normal operating. Therefore, researching on operational risk management has a vital significance for Chinese commercial bank in theoretical and practical.This paper focuses on operational risk in Chinese commercial bank. Firstly, it reviews and summarizes the literatures of economic theory in both domestic and overseas, including the definition, classification and characteristics of operational risk, and analyzing the relationship with operational risk from internal control, principal-agent the behavioral finance. Secondly, it shows the practice of operational risk of commercial bank in American, Germany, Britain and sums up the experienceof these banks. Thirdly, it discuses the present situation of operational risk of China commercial banks, and analyzes the questions to operational risk management. Lastly, it gives some options to strength management from the point of the internal and external management.In this paper, it studies operational risk management from a practical aspect to emphasis the necessity of operational risk management in China’s commercial banks. And then analyzes the management of operational risk to put forward the proposal plan. So it has great importance of preventing the China’s commercial banks’ operational risk and combining with the international banks.