The Development and Prospect of Operational Risk Measurement in China’s Commercial Banks
- DOI
- 10.2991/aebmr.k.210803.011How to use a DOI?
- Keywords
- Operational risk, Risk measurement, Regulatory reform, Commercial banks
- Abstract
With the development of various businesses of commercial banks in China, operational risk has become one of the main risks faced by commercial banks. Meanwhile, the international management methods for operational risk of commercial banks include Basic Indicator Approach, Standardized Approach, Advanced Measurement Approach, and the latest standard measurement Approach of Basel Association. Although many metrics have been produced internationally to control the operational risk of commercial banks, the operational risk management of commercial banks in China is still relatively backward. By comparing the development of China’s operational risk management with the international advanced level, it can be found that China’s operational risk management still has the problems of insufficient awareness of operational risk hazards, backward operational risk management mechanism and insufficient risk loss data, etc. China’s commercial banks should raise the awareness of operational risk as soon as possible, update the metrics for controlling operational risk and establish in this regard China’s commercial banks should raise the awareness of operational risk as soon as possible and update the measurement methods for controlling operational risks and establish their own risk data to improve operational risk management.
- Copyright
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Kailin Feng PY - 2021 DA - 2021/08/04 TI - The Development and Prospect of Operational Risk Measurement in China’s Commercial Banks BT - Proceedings of the 1st International Symposium on Innovative Management and Economics (ISIME 2021) PB - Atlantis Press SP - 69 EP - 73 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210803.011 DO - 10.2991/aebmr.k.210803.011 ID - Feng2021 ER -