Research On Risk Management Of International Settlement Business Of AB Bank Shaanxi Branch

International settlement business is a relatively new area of business for commercial banks in China. Although the business can improve commercial banks'competitiveness and bring new profit growth, at the same time, it bring a lot of risk to banks, because of the types of clearing ways and clearing tool combinations of diversity.The author of this paper investigated the risks of AB bank's Shaanxi branch, analyzed its risk management measures and the results of them, found the problems of management measures,then proposed a program as a feasibility and optimization solution for Shaanxi branch' risk management. The finds of this study are as follows:(1) The occurred risks of International settlement business in Shaanxi branch in the past three years were settlement risk, operation risk, reduced risk, credit risk, operational risk and business risk, and the top three of these risks were operation risk, reduced risk and settlement risk, international settlement business of Shaanxi branch's problems in its risk management are as following:the shortage of prior risk analysis, little emphasis on systems and processes' standardization and updates,no place for monitoring,Low implementation and the lack of risk management in employee training.(2) The target in management level of comprehensive risk management of Shaanxi branch is rising the level and capacity of risk management by established this branch's comprehensive risk management system,and promote bank's overall strength,then achieved its profit growth of index.The target in operation level is to adjustment the existing customers,develop new customers and pay attention to the service quality.(3) Comprehensive risk management system of Shaanxi branch's International settlement business needs to combine centralized management and decentralized management by adopting matrix organizational structure which has two dimensions on functions and the regional, make sure every level understands and clear the responsibility. Comprehensive risk management's have five steps:identification, assessment, monitoring and reporting, controlling, management.Each step has its own different content.(4)Comprehensive risk management system requires some protection measures to make its implementation.First, to optimize its risk monitoring system by establishing a comprehensive internal control and supervision system,early warning mechanisms.Second, to improve the information systems through information sharing system and information feedback system. The last, to strengthen technical safeguards and build an efficient and professional risk management team.