Kunshan Rural Commercial Bank Risk Prevention Measures

The emergence and development of Net Bank is based on the technology of network. The development of Net Bank represents the directions of the financial industry. Net Bank brings convenience to the customers, and also brings a lot of risks. For instance, because of the special factors of Net Bank, such as openness of the basic environment, complexity of the technology, virtual and international of transactions, distemperedness of laws and regulations. All these special factors brings business and technological risks to traditional bank.The operation of Net Bank is based on the network IT, also, it possess the salient features of traditional commercial banks. So the risks of Net Bank can be divided into two categories:technological risks based on the Internet IT security and business risks based on financial characteristics of Net Bank. The former includes but not limited to risks of network system, risks of design of software and risks of user actions. The later includes but not limited to legal risks, management risks, reputation risk, market risks and operation risks,etc. To the district country bank, beside the risks above, it also will face some special risks, such as strategic risk, outsourcing risk and liquidity risk.At present, Net Bank shows a trend of rapid development and popularization in China. But the corresponding risk regulatory system has not been established. There are some deficiencies in China’s risk regulatory system of Net Bank, and these deficiencies have taken the Net Bank kinds of risk. Now, the deficiencies of Net Bankrisk regulatory system in China has reflected in the following four aspects:lacking of the system of legal norms, lacking of inter of the Net Bank risk internal management, lacking of professional and technical personnel, lacking of external supervision. Different countries take different measures to Net Bank risk management. On the whole, there are many factors in common. First of all, all countries are trying to build a Net Bankrisk regulatory system emphasize both on safety and efficiency; secondly, it is important to use the law in the Net Bankrisk regulatory. Finally, to improve the regulatory system, such as market access, risk management, market exit,and so on.This paper analyses the strengths, weaknesses, opportunities and Threats of Kunshan Rural Commerce Bank with the SWOT analytical method. Based on this, this paper puts forward the preventive measures to the risks of the development of Kunshan Rural Commerce Bank Net Bank.viz.to bring up professional and technical personnel, to build the inter management system of Kunshan Rural Commerce Bank, to establish a sound Net Bank risk preventing system, to improve the quality of staff and to strengthen safety publicity.