Research On Operational Risk Control Of Branch A Of ICBC

In recent years,China’s regulatory authorities have continuously strengthened their supervision of the banking industry,which can be seen from the increasing number of fines and the amount of penalties disclosed by the CBIRC and the People’s Bank of China of banking financial institutions.A significant portion of these fines are caused by inadequate operational risk management.Poor operational risk management will cause commercial banks to bear certain economic losses and reputational losses,and in serious cases,even damage the sustainable operation and healthy development of banks.Therefore,in order to achieve sustainable development while meeting regulatory requirements,China’s commercial banks must strengthen operational risk management and continuously improve the level of risk management.After years of hard work,ICBC has become one of the world’s leading large banks,with a high-quality customer base and diversified business structure.As a local secondary branch of ICBC,with the fierce competition in the local financial market,Branch A continues to expand its business scale,increase its business types and accelerate product updates.However,the original operational risk management mode of Branch A can no longer meet the increasing needs of business development,and the situation of operational risk management is not optimistic.In recent years,Branch A has also repeatedly been subject to administrative penalties from regulatory authorities for inadequate operational risk management.Operational risks have had a significant impact on the steady development of Branch A.In this thesis,ICBC A is the research object to conduct an in-depth study of its operational risk control.This thesis first sorts out the research status of operational risk at home and abroad,introduces the meaning and characteristics of operational risk and the management process,and then introduces the theory of internal control,information asymmetry theory and comprehensive risk management,which provides a theoretical basis for the study of operational risk management of branch A.Secondly,the current operational risk management status of Branch A was introduced from the aspects of operational risk management organizational system,measurement index system,operational risk limit threshold,system,personnel,process and system,and one typical representative operational risk case was selected for in-depth analysis.Combined with the results of the questionnaire survey and case analysis results of Branch A’s operational risk management,the problems existing in the current operational risk management of Branch A in the four aspects of system,process,personnel and system are obtained,and combined with the author’s daily work experience,the problems existing in the operational risk management of Branch A are analyzed in depth,and the root causes of the operational risk problems of Branch A are that the organizational functions of Branch A are not in place,the operational risk management system is not perfect,and the human resource management is not perfect.There are five aspects: the implementation of the operational risk management process is not in place,and there are defects in the system development and design.Finally,according to the root cause of the operational risk of branch A,detailed optimization measures are proposed from four aspects:system,personnel,process and system.It is hoped that the research in this thesis can provide some ideas for the operational risk management of ICBC Branch A,and also hope to provide some valuable references for the operational risk management of other commercial banks.