Research On Operational Risk Control Of China Commercial Bank

Risk management is one of the important goals of commercial bank’s management.In recent years,with the impact of financial globalization,financial deregulation,the increasingly diverse financial products,the progress of financial technology and the rise of Internet finance,the activities of financial institutions are more and more complex,while the risk that banks face with is consequently increasing.At present,our country is in the process of economic transition.From the overall situation,the macro economy goes downward,liquidity is tighter,enterprise investments mistakes grow in numbers,the difficulty and cost of market financing increases,and private lending and illegal fund-raising social financing behavior are prevailing.All the above phenomena are easy to induce the financial crimes,like some companies and individuals using illegal means to get bank funds.With the increasingly fierce competition in the industry,the banks are busy with competing against the rivals in terms of speed and size,while relaxing the request to the standardization of business operation;finally this situation will exacerbate the probability of operation risk events.Banking industry is reforming and innovating constantly,new financial forms are emerging such as the Internet finance;however,while the traditional operational risk doesn’t disappear,the new operational risks now emerge in endlessly.Since the operation risk happens frequently with shocking damage,the status of operational risk in the financial practice is now increasingly remarkable.As a consequence,the establishment and improvement of the management system of operation risk has become the important subject to be solved for the modern commercial banks.This thesis first introduces the definition,characteristics and classification of operationalrisk;and according to the statement of operational risk in the Basel agreement as well as combining China’s national conditions,it signifies the main operational risks faced by Chinese commercial Banks through the data and phenomenon,and also explores the reason.Then,by studying the current international operational risk quantification method and comparing these methods to ensure their applicability in our country,the author tries to combine the actual conditions of China X bank to find a method suitable for the measurement model of state-owned banks and carries out a series of empirical research.Finally,the author draws the conclusion of the thesis,and puts forward the corresponding countermeasures for the management and prevention of risk operation of the state-owned banks.