Research On Human Factors Of Operational Risk Of Commercial Bank

In 2016, Agricultural Bank of China, China Citic Bank and other major commercial banks’ notes case occurred frequently, making the bank industry pay close attention to operational risk again. Rural commercial Banks lag behind large state-owned commercial Banks and joint-stock commercial Banks in risk management. Research on operational risk of rural commercial banks contributes to the prevention and control of operational risk as well as the improvement of internal control.According to the Basel committee’s documents, this article firstly introduces the definition, classification and characteristics of operational risk. As operational risk caused by human factors makes up a large proportion, this article studied operational risk deeply from the perspective of human factors. Then, this paper uses principal-agent theory, bounded rationality, gambler mentality to analyze the effect of the human factors on operational risk. Based on these analysis, risk preference, behavioral biases, personnel quality, work load and other factors may affect the operational risk.Next, taking LH Rural Commercial Bank as an example, the article studies the influence of risk preference, behavioral bias, personnel quality, workload, job characteristics and personal characteristics on the operational risk of the rural commercial bank, based on the statistics and questionnaire of LH Rural Commercial Bank. This paper uses the multi-variate linear regression model.The empirical results are as follows:Firstly, the personnel quality has significant effects on the frequency of operational risk. The more certificate an employee owns, the higher the professionalism and the less the frequency of operational risk. The more the knowledge of the risk, the better the ability of controlling risk and the less the frequency of operational risk. Secondly, Certain behavioral characteristics significantly influence operational risk. The square of risk preference is correlated with the frequency and loss degree of operational risk. Deterministic effect has a negative effect on the frequency on operational risk. Status quo bias has a positive influence on the loss degree of operational risk. Thirdly, gender has an significant impact on loss degree of the operational risk. Generally, men’s loss degree is higher than women. What’s more, job characteristics have significant influence on operational risk. The frequency and loss degree of operational risk in Branch post is higher than the head office position, The frequency of operational risk in lower-level positions is obviously higher than the management.Finally, this paper puts forward the countermeasures and suggestions on the basis of above analysis, and then put forward the research prospect on the basis of summarizing the full text.