Research On Business Environment And Internal Control Factors On Operational Risk Management Of Z Bank

In recent years, Western banks pay more attention to the Operational Risk (the"OR") management. As the standard of bank risk management leader,The Basel Committee invent series of OR ideas and methods of supporting.The China Banking Regulatory Commission is to meet the needs of China’s financial reform, China’s commercial banks are trying to joinhe Advanced Measurement Approaches(AMA) in order to enhance the level of bank management.Business environment and internal control factors (BEICFs) are the means to manage and measure operational risk. It is one of the four kinds of data that the Basel Frameworkrequires to implement the advanced measurement method.BEICFs can adjust and allocate economic capital measure value,so it’s very important in economic capital management.As a bank manager for many years engaged in internal control compliance, I study the role and implementation strategy of economic capital adjustment, allocation of operational risk. All study Based on the the Basel Framework and regulatory requirements in the operation ofChina’s in the field of OR. This paper implements the quantitative statistics and distribution of the results of the OR management,andprovide useful suggestions for the application in China’s commercial banks.The full text is divided into five parts:the introduction expounds the overall background of the development of operational risk management in commercial banks, and summarizes the research and comments on the relevant scholars in this field.Finally this chapterdescribes the framework, characteristics and shortcomings of this paper. The first chapterintroduces the three operational risk capital measurement methods, focus on the comparison of several measurement models,how the BEICFs is so importantto the economic capital of bank operation risk.The second chapter introduces the mode of operation risk economic capital management of Z bank,as well as it’s defects.Then it points out the beneficial effect of BEICFs tools, which can solve the problem of Z bank.The third chapter puts forward the solution of BEICFs according to the requirement of the new capital accord in Basel as a view of the problems existing in the operation risk management of Z bank. The Last chapter uses the actual data of Z bank in 2014 to test the validity of the BEICFs scheme, and shows the higher matching degree of BEICFs scoring card system and the actual risk to prove it’s role of improving OR management.