A Study On The Causes Of Operational Risk Of Commercial Banks In China

Operational risk is one of the most important risks of commercial banks,during the period of commercial banks' survival,this risk is not allowed to be circumvent.Therefore,only by quantifying the operational risk of commercial banks,fully understanding the mechanism of operation risk formation,and analyzing the causes of operational risk,can the control of operational risk be carried out more accurately,reduce the impact of operational risk and improve the risk resistance and management level of commercial banks.In recent years,China's commercial banks,especially some rural commercial banks,have been overly pursuing the speed of development in their business development,but neglecting the operational risks in it,resulting in a high risk of banking operation,and ultimately damaging the long-term development and long-term interests of the banks.This paper studies the causes of operational risk of commercial banks based on the perspective of incentive and constraint,and analyzes the mechanism of the formation of operational risk of commercial banks from the perspective of theory and practice.This paper first combs the literature research on banking operational risk and its causes by scholars at home and abroad.It is found that most of the scholars put the focus on the measurement and management of operational risk.In addition,some scholars have analyzed the causes of operational risk based on personnel factors,but few are viewed from incentives and constraints.Based on this,this paper first summarizes the basic concepts of operational risk.Then the incentive and constraint theory is introduced to study the operation mechanism of incentive and constraint mechanism in the bank and the analysis of incomplete information static game and incomplete information dynamic game with game model.On this basis,the relationship between incentive constraint factors and operational risk is further summarized with the operation risk of banks.Finally,this paper takes the A agricultural business as a research object,choosing the quantitative point of view of the operational risk measurement on the A bank and other 41 listed banks,through the quantitative results to get the operational risk level;Then,we do the correlation analysis with the results of questionnaires,and study the relationship between operational risk causes and incentive and restraint mechanisms from the perspective of employees.;Finally,we study the impact of the incentive and constraint system trial run and the official running time node on the frequency of all line violations.The results of this paper show that there is a significant correlation between the causes of commercial banks' operational risk and the incentive and restrictive mechanism of banks.(1)From the theoretical point of view,there is a process between the occurrence and the outburst of operational risk loss events.This process is a dynamic factor which takes the incompatibility of incentive and constraint system as the dynamic factor,and produces a positive reinforcement of the reverse strengthening and opportunism tendency of the limited rationality of the individual.As the employees are a limited rational and opportunistic individual,when the individual interests and the rules and regulations conflict,in order to achieve the maximum of their own utility,it will produce game behavior,and then may lead to the occurrence of operational risk.(2)According to the empirical results of the quantitative analysis of operational risk,although the five big banks are faced with greater operational risk exposure,the banks with large assets are bound to have a big situation in the absolute value of operational risk.Therefore,after eliminating the impact of asset scale factors on the value of operational risk and adopting the concept of relative value of operational risk,it is found that the level of operational risk of state-owned banks is still the highest among the four types of banks,followed by joint-stock commercial banks,urban commercial banks and rural commercial banks.The operation risk status of A agricultural business bank ranks the second highest among the 8 rural commercial banks.(3)From the relevance of the investigation of the operational risk questionnaire,there is a negative correlation between the awareness of risk prevention and the job stress in the employee's work,and a positive correlation with the satisfaction of the salary system.Leaders' encouragement and care can play a positive role in preventing operational risks for employees,and the cultivation of employees' risk awareness is conducive to the prevention of operational risk.(4)From the perspective of incentive and constraint system,with the implementation of incentive and constraint system,the occurrence of violations can be significantly reduced.In short,the impropriety of incentive and restraint mechanisms is an important reason for operational risk,which must be paid enough attention by bank managers.The lack of positive incentive or excessive reverse constraint may weaken the initiative of the employees to prevent the operation risk.It is necessary for the bank managers to improve and improve effectively from the system,work environment,work pressure,salary system and so on.