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Study On Operational Risk Management Of Commercial Banks In China Based On Risk Cultural Perspective

Posted on:2016-11-30Degree:MasterType:Thesis
Country:ChinaCandidate:T L LiFull Text:PDF
Abstract/Summary:PDF Full Text Request
Banking industry is a high-risk industry, and the operational risk is one of the major risks faced by commercial banks. Since the 1990s, the world financial industry has entered a period of turbulence. And both in China and abroad there is a series of major financial cases caused by operational risk happened. It not only caused huge losses or even bankruptcy to commercial banks, but also seriously damaged the bank's image and credibility. Therefore, the financial industry and the national regulatory authorities all realized the importance of operational risk management, and they focused on operational risk has risen to unprecedented levels. However, domestic research of operational risk management tends to discuss the causes of operational risk and its countermeasures comprehensively, though it is comprehensive indeed but lack of pertinence. This paper attempts from the perspective of risk culture to summarize the experience and lessons of domestic and foreign operational risk events, and provide a new research idea for operational risk management of Chinese commercial banks.Throughout the domestic and international numerous banks huge losses or even bankruptcy events which caused by improper handling of operational risk management, the reason is often not because of the lack of risk control mechanisms, but mainly because the bank's operational risk management culture is unsound, especially because the consciousness of operational risk management of bank staff is too weak. In recent years, the international banking industry has also increasingly awarded of the importance of operational risk management culture to commercial banks operating risk management effectively, and widely available staff to operational risk management culture ideas. However, at present in China's commercial banks the understanding of operational risk is not enough comprehensive and profound, the bank employees' awareness of operational risk is relatively weak, the operational risk management ideas is also relatively lagging behind, the operational risk management system is still not perfect, the informatization construction of the banking system is relatively backward, etc., resulting in the operational risk events of China's commercial banks occur frequently. Therefore, strengthening the construction of operational risk management culture has certain practical significance to improve the level of operational risk management of Chinese commercial banks, and optimize of operational risk management system.The research content of this article mainly divides into six parts. First, it introduces the research background and significance, the domestic and foreign research status, and research ideas and methods. Then, the paper respectively from the basic theory of operational risk and corporate culture theory starts to expound the definition, classification and characteristics of operational risk, the connotation and hierarchy of corporate culture, as well as the connotation of risk culture, and to explore the relationship between risk culture and operational risk management. Next, the paper discusses the structure of operational risk management culture system and its mechanism. Then, this paper expounds the present situation of operational risk of China's commercial banks, and analyzes the causes from the risk cultural perspective, and then combines with the typical cases of operational risk of foreign commercial banks to analyze the causes and obtain the enlightenments. Then again, with the above analysis, the paper puts forward the countermeasures to improve the operational risk management of commercial banks in China from risk cultural perspective. That is, to establish and perfect the commercial banks'operational risk management culture respectively from the material level, the behavioral level, institutional level and spiritual level, and thus to control the operational risk of commercial banks effectively and improve the level of operational risk management in Chinese commercial banks. Finally, it summarizes the main conclusions of this paper. That is, weak or even absent operation risk management culture is the underlying reason for the frequent occurrence of domestic and foreign operational risk loss events. And the operational risk management culture can effectively prevent and control the operating risk, so commercial banks should continue to reinforce the material culture, standardize the behavior culture, perfect the system culture and enhance the spiritual culture to strengthen and improve the operational risk management. At the same time this paper puts forward the prospect of the further study in the future.
Keywords/Search Tags:commercial banks, risk culture, Operational risk management
PDF Full Text Request
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