Commercial Bank Operational Risk Identification and Management

Author: Zhang Jiguang
Publisher:
Publish Date: 2005-09-01
Features: In recent years, the frequent occurrence of major financial cases has warned us that the operational risk situation in domestic commercial banks is not optimistic. Facing the lack of knowledge and relatively low management level of operational risk among domestic commercial banks, how to establish a sound operational risk management framework as soon as possible and how to introduce advanced risk management technologies have become urgent tasks for the domestic banking industry. The publication of this book will, to some extent, make up for the shortcomings in research in this field. The core of commercial bank risk management can be summarized into three questions: "What risks do commercial banks face?" "Who manages these risks?" and "How are these risks managed?" Operational risk management follows the same principle. The author expands on these three questions. The book is divided into two parts: the first part, "Understanding," primarily addresses three questions: "What is operational risk?" "What operational risks do commercial banks face?" and "What are the characteristics of these operational risks?" The second part, "Management," focuses on solving three key issues: "Who manages operational risk?" "How is operational risk managed?" and "How should capital be allocated for operational risk?" These questions are not only the core content of commercial bank operational risk management theory but also the main challenges faced in practice. The author discusses these practical issues and, combining the latest developments in operational risk management abroad, provides an in-depth and detailed analysis of the situation in Chinese commercial banks. This book can serve as a guide for senior management and risk management personnel in commercial banks, as well as a textbook for business training in commercial banking and for financial majors in universities and colleges. Additionally, for researchers and readers interested in operational risk, this book is also an excellent reference.