Measurement And Management Research Of Operating Risk Of Commercial Banks On Basel ?

With the asset scale of commercial banks expanded continually, the business diversified, the technology upgraded, and the financial innovation accelerated, the operational risks caused by the defective management of human resources, undeveloped mechanism and other reasons brought huge losses to commercial banks. Risk management is the key to the sustainable management of banks, among which the operational risk has been recognized as an important part of the bank risk system. As it can be seen from the subprime crisis in 2008, the commercial banks managed in accordance with the Basel ? had poor ability against the financial risk. However, even though the Basel ?, as the reformation measure to strengthen the risk management of banks was officially issued in 2010, China still failed to establish a long-term management mechanism that merged capitals and risks, because of the research on operational risks conducted late and the lack of effective historical data.Even the selection of how to measure operational risks and how to build models encounter great difficulties. Therefore, researching on the measurement of operational risks, especially the study on measurement models, it is of theoretical significance and practical value to improve the management standard of commercial banks in China.In this essay, the theory based on operational risks is first analyzed comprehensively to define the operational risk, briefly describe its characteristics and classification and introduce the related content of operational risks management in Basel ?. After that, based on a large number of documents, the methods for operational risk management and measurement conducted by domestic and foreign commercial banks are summarized, and then diversity of methods for operational risk management and measurement conducted by Chinese commercial banks are analyzed and compared, which concludes the measurement based on income models is the most feasible method for risk management in Chinese commercial banks. Thirdly, through the basic data of the 16 listed commercial banks in China, the essay explain the relationship between the operational risks of commercial banks in China and their business scales, combining with methods of the time series model and panel model to test the validity. Finally, to improve the operational risk management of commercial banks in China and reduce the operational risks, it is suggested that commercial banks should improve the internal structure, optimize the operational risk management procedure, strengthen the management of human resources, reduce the loss caused by defective systems, and increase the operational risk of investment.