The Research On The Operational Risk Of Credit Business In The Weinan Branch Of AB Bank

Affected by the financial crisis and the rapid expansion of the bank business since 2008, operational risks of commercial banks have become increasingly prominent. In the current stage that China has to simultaneously deal with the slowdown in economic growth, make difficult structural adjustments, and absorb the effects of previous economic stimulus policies together with the development of Internet Plus Action Plan, the operational risks faced by commercial banks diversify developing trends, which puts forward new requirements for the operational risks management of commercial banks. Due to credit business is the main source of revenue of Weinan Branch of AB Bank, Weinan Branch should pay more attention to the operational risks in the bank credit operations. Thus, it is particularly important to do the research on the operational risks of credit business in the Weinan Branch of AB Bank.There are three analysis methods (i.e. literature research, statistical analysis and case study) used together in this paper based on the object of Weinan Branch of AB Bank. The definitions of operational risks in the current researches are compared at first in the paper. Then we briefly discusses the related theory and control, slow release measures about the operational risks of the commercial banks on the basis of research results and management experiences in the field of finance in the world. And a theoretical foundation is laid for the case studies and research of the problems in the bellowing. In the order to do the research of operational risks of credit business in the Weinan Branch of AB Bank, some typical cases about the operational risks of credit business in the Weinan Branch of AB Bank are chosen in this paper. In the analysis of the cases, this paper gives the cause of the operational risks mainly from the management perspective and business perspective. At the same time, six countermeasures to improve operational risks management of credit business according to our experiences are proposed, i.e.1.strengthen the three lines of defense in the bank risk management and forming a efficient and rigorous operational risk management system.2. Creating an advanced risk culture and a compliance operating environment.3.Strengthen the capital constraint and improving the incentive mechanism.4. Developing a practical financial data analysis tool.5. Establishing an effective internal control system.6. Improving the control technology using computer to obtain a perfect combination of the internal control design and business operations. The six countermeasures above contain two mainly aspects management and business operations, which are feasible, practical and can be used in the same kind of financial institutions as well and help to further improve the control ability of operational risks of the commercial banks’credit business.