The Study On Operational Risk Management Of R Branch Of Evergrowing Bank

For the past few years, the paper market has experienced a notable expansion in its scale compared to other sub markets of money market. Considering improving client recognition and enhancing market competitiveness, banks consequentially pay much attention to the paper market for reasons of its low cost, easy access and approval from the counterparties.However, the paper market has witnessed numbers of law cases as well in recent years. As the CBRC indicated, insufficient management on bill business was a key factor on giving rise to those occurrences. Thus, it is of vital importance to reinforce the supervision for market’s sustainable and healthy development. Also, it can be regarded as a critical topic for banks’ steady operation. In the circumstances, R branch of Evergrowing Bank, the same as a proportion of the financial institutions, has problems of inadequate censor on trading background and a lack of implementation on inquiry reply. It illustrates that the R branch suffers from an accumulated operation risk on bill business. Meanwhile, for the commercial paper financing business as a whole, it is now regarded as a high risk part.In order to sustain a steady development and to address relative risks, this essay systematically analyses the operation risk on acceptance and discount. It is based on various theories of operation risk and specifies Evergrowing Bank as the studying object. It comes to a conclusion that the internal and external causes for operation risk are staf’s inexperience, little awareness of risk control, outdated negotiable instrument laws, difficulties for investigating the transaction background and so forth. Afterwards, combining with the actual circumstances of R branch, the essay comes up with a number of measures, which specifically are raising the effectiveness of the billbusiness management system, specifying the operation process, promoting the risk control system, focusing on critical risk points and fully taking advantages of pre-warning system of the headquarter to boost the fast and healthy development of R branch’s bill business.