Title: Operational Risk Management of Commercial Banks
Abstract: In this paper, we present the types and characteristics of risks in commercial banks. Among all the risks, operational risk is paid more and more heed to. It is caused by people, processes, external events and other factors. According to the Base II New Capital Accord, there are mainly three approahces to the capital for dperational risk-The Basic Indicator Approach, The Standardized Approach and The Advanced Measurement Approach. We can take actions to manage the operational risk in commerical banks and improve their competitiveness: (1) create a culture of risk management; (2) establish the independent organizational structure of risk management; (3) introduce the strict division of posts; (4) design a procedure of tight authorization; (5) assume the procedural or standardized control; (6) set up the efficient program of employee management; (7) reengineer the business processes of banks; (8) highlight control over special risk points.
Publication Year: 2009
Publication Date: 2009-10-01
Language: en
Type: article
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