A Research On The Operational Risk Management Of Chinese Commercial Banks

Operational risk management is a systematic and long-term work,and it requires the managers to make operational risk under control in effective.However,the operational risk called "details of the devil" has long been ignored by people,until the 1990 s,the scholar really paid attention to and do research on it.Compared with foreign countries,there are still many shortcomings in the management of operational risk in Chinese commercial banks,and the theoretical research process of the management of operational risk is still far behind the experts and scholars in the west.In recent years,exposed operational risk events in China often occur,from a certain point of view,operational risk management of Chinese commercial banks is not good.Banks need not only to "alarm bells" for operational risk,but should also be blowing horn to promote the mechanism of operational risk management more perfect,measurement and monitoring of operational risk more effective.Therefore,it is of great significance to explore and study how the commercial banks manage the operational risk systematically and efficiently according to the development situation and environment of the current financial industry in China.This article first elaborates basic theories about operational risk management,including their definitions,categories,and characteristic.Secondly,it makes a brief statistical analysis of the present situation of the operational risk on Chinese commercial banks.Then,based on loss distribution method,which is a typical method of the "bottom-up”;and income model method,which is a typical method of the "top-down",respectively calculating the value at risk in the macro level and micro level.In addition,the flaws of the model are discussed.Finally,I put forward some suggestions on the operational risk management in the light of the present situation of Chinese banking industry.