Construction Of Bank's Operational Risk Management System Based On COSO Internal Control And Basel ? Accord

Operational risk objectively exists in all commercial banks.The operational risk of commercial banks is getting more and more complex and diversified.The influences become more extensive.Which are owing to the substantial changes of financial environment.Most of the risk event cases of worldwide commercial bank are due to the failure of operational risk management.The occurrence of operational risk events not only brings huge financial and reputational losses to commercial banks,but also affects the normal development of the whole national economy.At present,China is now in a situation of relatively immature financial system and the ability of risk resistance and experience are relatively weak as well.In this connection,President Xi Jinping,underscored that China should deepen supply-side structural reform in the financial sector and strengthen the sector's ability to serve the real economy.President Xi Jinping also pointed out that finance is a core aspect of a country's competitiveness,financial security is an important part of national security,and the financial system is a major fundamental system in the process of economic and social development.Therefore,the perfection of the operational risk management system and the prevention of the operational risk is currently a valuable research topic of China's commercial banks.In view of the importance and complexity of operational risk,this article counts on the basis of hackling the relevant literature and combined with the actual job of author to take S bank Guangzhou branch as an example,to perform analysis of the existing problems and root causes of operational risk in S Bank Guangzhou branch,through the introduction of the basic information,specific risk cases and the current situation of operational risk management of S Bank Guangzhou branch.Then,according to the study result of the above analysis of the existing problems and root causes of S Bank Guangzhou branch,to integrate with COSO internal control and Basel accord theory,and further draw on the successful experience of handling operational risk cases of other large worldwide commercial banks;to put forward recommendations on constructing operational risk management system of S Bank Guangzhou branch.The research revealed that there are problems of imperfect operational risk management system in S Bank Guangzhou branch,such as the lack of standardized process hacking,operational risk management tools are not effectively applied,the defects can be solved by the establishment of standardized process hackling mechanism,through hackling the bank business process to identify the risk points in the process,then formulate and implement the corresponding risk control measures;enhance the efficiency of operational risk identification and setup a standard information database,etc.,to reduce operational risk exposure and potential loss events.