Research On Operational Risk Management Of M Commercial Bank

Finance is the core of the modern economy,and commercial banks are the main participants in the financial market,so the risk management of commercial banks plays a key role in the stable development of the financial system and the national economy.The business characteristics of commercial banks 'operating risks determine the diversity and complexity of the risks they face since their birth.In the early stage of the development of commercial banks,the operation risk did not bring significant economic loss to commercial banks.Therefore,the management of operational risk has not received due attention for a long time.However,with the rapid development of the global economy and the continuous progress of the financial industry,the business of commercial banks has changed greatly,and the harm of operational risks to commercial banks has gradually become apparent.The bank of Bahrain failed in February 1995,which is widely regarded as closely related to "operational risk".Therefore,the management of "operational risk" has been paid much attention.The new Basel capital agreement in 2004 officially raised "operational risk" to the same level as "credit risk" and "market risk".With the deepening of interest rate marketization and the increasing degree of RMB internationalization,the financial market of our country has entered a period of rapid development.In the face of cross-border competition from the industry and the Internet,the business of commercial banks is developing rapidly and product innovation is constantly emerging,which greatly increases the uncertainty in the process of commercial banks 'operation and development,and also puts forward higher requirements for their risk management.It is worth noting that in recent years,there have been many incidents of operational risk of commercial banks in China.Facing the new situation of increasingly complex financial market,in order to adapt to the rapid development of financial industry in China,on the one hand,the central bank and the cbrc have issued several requirements on the operational risk guidance,and put forward the corresponding guidance from the regulatory level;on the other hand,the commercial banks themselves have begun to think and deal with operational risks.However,in the actual operation and management of commercial banks,because of the internality and complexity of operational risk,it is difficult to establish the operational risk management system effectively.Compared with market risk and credit risk,the biggest difference of operation risk is that the risk is not proportional to the yield.In other words,every operation risk comes with a real loss,and commercial banks are willing to avoid operating risk.Therefore,the lack of realand first-hand cases of operational risk makes it difficult to professionalize and systematize the study of operational risk management.The research object of this paper is the operation risk management of M bank.Compared with other types of commercial banks,Bank M,as a large state-owned commercial bank,has a perfect management system and proper control of operational risk,but it is still unavoidable.In view of the need of research,the author collected and collated a lot of open and undisclosed actual operation risk cases and data from many channels.From the source of operational risk monitoring information,accounting,department inspection,actual loss and internal audit are the most exposed areas of operational risk.Among them,the number of risks found by accounting channels is the highest;According to the type of operation risk loss events,the hightest proportion of fraudulent incidents,the loss caused by internal process level problems is the greatest,and the low-frequency and high-loss characteristics are obvious.According to the business types of operational risk items,personal finance,corporate finance and payment and settlement items account for more.On the basis of summarizing the problem of M bank operation risk management,this paper analyzes the causes of M bank operation risk management from three aspects: process,personnel and system.Among them,the process level is embodied in the operation process has the loophole,the authorization execution has the problem;The personnel level is reflected in the incomplete understanding of risk,the lack of workforce management,and the mismatch of the appraisal incentive policies.The cause of the system is the imperfect corporate governance structure,the imperfect internal control system and the imperfect risk management system.According to the cause of the problem,combined with the actual situation of M commercial bank,this paper puts forward corresponding suggestions and measures from five aspects:reforming M bank's organizational management structure,improving operation risk system,strengthening internal control system,implementing operation risk management responsibility and improving operation risk management methods.This paper hopes that through the research of M commercial bank operation risk management,some suggestions will be put forward to raise the attention to the management of operation risk,raise the management level of operation risk of commercial bank,promote the improvement of Chinese commercial bank operation risk management system,and further reduce the economic and reputational loss of operation risk to commercial bank.It has certain practical significance.